What do you think about China’s exchange rate policies?

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China's exchange rate policies:

The currency of China Yuan holds a higher value in the foreign currency exchange in the international market. This is the main reason why the decline in exports does not affected the revenues due to stronger currency value of Yuan. In January 2016, the trade surplus of China showed $406.20 billion which showed a volatile deflection in the business. The current scenario of trade in China shows that the domestic demands would rise which would make the industries work more in increase in outputs for domestic markets. The country managed floating exchange rate regime which happened when the drop in the currency against US dollar happened in 2015. Since the market of china is volatile in nature which may show an immediate rise and drop of trade surplus, so, the floating exchange rate condition is suitable for the economy of China to be unaffected from losses in the market.

Rahul Sunny answered 2 years ago

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