China: currency

 

 

The Chinese local currency is the yuan renminbi. The graph shows the value of the yuan against the US dollar from 1952 to 2007.

After keeping the two tightly linked for years, China revalued the yuan by 2.1 per cent against the dollar in July 2005 and moved to an exchange-rate system that uses a basket of currencies.

From mid-2005 to late 2008, the cumulative appreciation of the yuan against the dollar was more than 20 per cent, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation.

Currently, 1 yuan renminbi is equivalent to US$0.16.