Has the currency of the country you selected appreciated or

Question

The Chinese currency is considered undervalued by many other countries, including the U.S. Prior to July 2005, the Chinese RMB (yuan) was pegged at 8.28 RMB to 1 U.S. dollar. It went off the peg in July 2005 and now the exchange rate is 6.12 RMB to 1 U.S. dollar.

The paper should address the following:

1. Has the RMB appreciated or depreciated since July 2005? Explain.

2. Calculate the percentage change since July 2005.

3. Has the U.S. increased exports to China since July 2005? Explain.

4. Has the U.S. decreased imports from China since July 2005? Explain.

5. Does the change in exchange rates result in U.S. consumers paying more or less for goods imported from China? Explain.

6. Is the RMB fairly valued now relative to the U.S. dollar? Explain.

7. Has the currency of the country you selected appreciated or depreciated relative to the RMB? What is the impact on imports/export? Explain.

8. Should China continue to manage its currency or let it float? Explain.

Answer 1

As showing the assignment that considered all the RMB appreciated or depreciated The Chinese currency is considered undervalued via many other countries, as well as the U.S. Prior to July 2005, the Chinese RMB (yuan) was doweled at 8.28 RMB to 1 U.S. dollar. It went off the peg in July 2005 and now the exchange rate is 6.12 RMB to 1 U.S. dollar. The paper should address the subsequent: 1. Has the RMB appreciated or depreciated since July 2005? Explain. 2. Calculate the % change since July 2005. 3. Has the U.S. raised exports to China since July 2005? Explain. 4. Has the U.S. decreased imports from China since July 2005? Clarify. 5. Does the change in swap over rates consequence in U.S. consumers paying more or less for goods imported from China? Clarify. 6. Is the RMB fairly valued now relative to the U.S. dollar? Explicate.