It is more important to recognize that the Chinese government should avoid repeating the mistakes brought about by the appreciation of the Yen.
Over all, the RMB exchange rate reform for more than three years was successful. First of all, the renminbi exchange rate flexibility is constantly enhanced by releasing the pressure of RMB appreciation and second, the operation of the exchange rate reform is under control. The exchange rate reform of RMB appreciation through China's influence is a theory transformed into reality. Meanwhile, the main economic sectors are influenced by the appreciation of the renminbi or the RMB exchange rate reform.
It was in July 2005 that China announced a move that would have major implications on the global economy: it was revaluing the Yuan. Since then, economists, analysts and businessmen have wondered how much impact the Yuan revaluation would cause. Would it cure the seemingly infectious diseases of the global market or would it finally give the world economy a slow and painful death
For a long time now, China's effect on the world market has been undeniably noticeable. The big nation's influence has surpassed the prejudice of only producing cheap goods and labor. ...Show more