For many years, China tightly managed its currency through intervention and capital controls, effectively pegging the yuan to the U.S. dollar (a rate of about 8 yuan per dollar). Which of the exchange rate regimes discussed in the textbook did China have at that time?

Question

Quizplus · Accepted Answer

China's policy of maintaining its currency at a constant rate against the U.S. dollar is an example of a fixed exchange rate regime. In this system, the country's government or central bank sets and maintains an official exchange rate with a foreign currency or a basket of currencies.

For Many Years, China Tightly Managed Its Currency Through Intervention