Case | HBS Case Collection | March 2006 (Revised April 2015)

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

by Laura Alfaro and Rafael M. Di Tella

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, and Rafael M. Di Tella. "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 April 2015.)