Economics class: China props up renminbi ahead of leadership summit in March
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Exchange rates
Click to read the article and then answer the questions:
China props up renminbi ahead of leadership summit in March
Define exchange rate
Using a diagram, analyse how ‘holding off on cuts to short-term interest rates’ will help to keep the value of the renminbi’s dollar exchange rate stable
Using a diagram, analyse how ‘higher yields on dollar debt relative to renminbi bonds’ will have piled downward pressure on the Chinese currency
Define tariff
“Trump, the Republican frontrunner, has said he could impose a 60 per cent tariff on Chinese imports if elected in November.” Analyse how such a policy would further exacerbate the downward pressure on the Chinese currency
Gavin Clarke, Emmanuel College
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