In July 2005, China implemented a new system in which the yuan could float within narrow boundaries based on a set of major currencies.

Question

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This statement is true. In July 2005, China abandoned its fixed exchange rate system and implemented a new system where the yuan could float within narrow boundaries based on a set of major currencies, such as the US dollar, euro, and Japanese yen. This system is known as a managed float or a dirty float.

In July 2005, China Implemented a New System in Which