Reform of China's Foreign Exchange Rate System: How the Newly Adopted Managed Floating System Actually Works
5 Pages Posted: 22 Feb 2006
The foreign exchange rate system adopted by China in July 2005 can be characterized as a manage floating system based on the BBC rules-band, basket and crawl. However, the authorities have continued to suppress the yuan's rise against the dollar by intervening in the foreign exchange market, and the C in BBC has looked more like control than crawl.
Keywords: yuan, band, basket, crawl
JEL Classification: F31
Suggested Citation: Suggested Citation