China has purposefully fixed its exchange rate so that the yuan is undervalued relative to the U.S. dollar.

Question

Quizplus · Accepted Answer

China has been accused of purposefully undervaluing their currency in order to make their exports cheaper and more competitive on the global market. The Chinese government has intervened in the currency market to keep the value of the yuan lower than it would be based purely on market forces.

China Has Purposefully Fixed Its Exchange Rate So That the Yuan