Case | HBS Case Collection | March 2006 (Revised March 2014)

China: To Float or Not To Float? (B) - Timeline of Changes Relevant to the Chinese Renminbi

by Laura Alfaro, Rafael M. Di Tella, Ingrid Vogel, Renee Kim, Bill Russell and Hilary White

Abstract

On July 21, 2005 China revalued its decade-long quasi-fixed exchange rate of approximately 8.28 yuan per U.S. dollar by 2.1% to 8.11% and, at the same time, introduced a more market-based exchange rate system. Many analysts and economists were disappointed with what they considered too small a change and called for more flexibility in the U.S. dollar-yuan exchange rate. Provides a timeline of further changes relevant to the Chinese renminbi.

Keywords: currency; exchange rate; China; Macroeconomics; Trade; Currency Exchange Rate; Governance Controls; Policy; China; United States;

Citation:

Alfaro, Laura, Rafael M. Di Tella, Ingrid Vogel, Renee Kim, Bill Russell, and Hilary White. "China: To Float or Not To Float? (B) - Timeline of Changes Relevant to the Chinese Renminbi." Harvard Business School Case 706-022, March 2006. (Revised March 2014.)