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The weak economic environment in the country in 1985 resulted in the re-introduction of the managed currency floating system. Between 1985 and 1995, the changes in the Chinese domestic finance and economy led to a rather drastic depreciation of RMB. The Chinese government reverted back to pegging its currency to the US dollar. The peg rate was approximately $8.28 RMB to $1 US in 1995. It was not until 2005 that the Chinese and US currencies were ?°un-pegged?±, that is, RMB will be able to reflect based on its fair value.
2. China??s growing economy
Since the economic reforms in 1979, China became one of the fastest growing countries in the world...
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