China's Fitful Economic Reforms
Published By: | Published Date: December, 01 , 2015Back in 2004, when I ran the Chinadesk at the International Monetary Fund, my team some written questions to Beijing ahead of our meetings with Chinese officials. China’s central bank had claimed that the value of the currency, the renminbi, was determined by market forces. But to the rest of the world, it looked like the currency’s value was tightly managed — so tightly that its value relative to the U.S. dollar did not change. We asked how this was possible if the exchange rate was truly market determined. After all, market exchange rates among major currencies fluctuate a lot.
Author(s): Eswar Prasad | Posted on: Dec 16, 2015 | Views()