Under pressure from Japan,the United States,and Europe,China announced in July 2005 that it would switch from pegging the yuan against the dollar to linking the value of the yuan to a 'basket' of currencies.The result of this change was

Question

Quizplus · Accepted Answer

The switch from pegging the yuan against the dollar to linking it to a basket of currencies led to a gradual increase in the value of the yuan relative to the dollar. This shift was intended to reduce China's trade surplus and address concerns from other economies that the yuan was undervalued, giving China an unfair advantage in trade. However, the increase in the value of the yuan has been relatively small over time, indicating that China is proceeding cautiously with the reform.

Under Pressure from Japan,the United States,and Europe,China Announced in July