Making the Yuan Right

摘要

Responding to global criticism that its currency was undervalued, Chi-na announced in July that it was ending its practice of pegging the yuan to the U.S. dollar. Instead, the yuan will fluctuate based on a currency basket dominated by the U.S. dollar, euro, Japanese yen and South Korean won. The immediate effect was a revaluing of the yuan by 2.1% to 8.11 yuan per U.S. dollar, a small change from the previous peg of ～8.28 yuan per dollar that had been in place for more than 10 years.