Exchange rate system, What are the different arguments used

Exchange rate system

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Reference no: EM131085060

1. What are the different arguments used by the US and Chinese governments about the renminbi's exchange rate?

2. Do you think that the renminbi is overvalued against the U.S. dollar?

3. The PBoC's policy of exchanging all US dollars for renminbi could produce inflationary pressures. How does the PBoC avoid this risk?

4. Does maintaining a quasi-peg to the US dollar have a cost for China? Does the policy of buying US Treasury bonds have a cost for China's economy?

5. After the July 2005 reform, what was China's exchange rate system?

Reference no: EM131085060

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