Bear in mind, though, that since China abandoned the single currency peg, it can manage its US dollar exchange rates in distinct ways - it can, for example, discount the RMB¥ against the € when the € rises against the US$, rather than directly pegging against the dollar. That is, rather than pegging to the US$, it has the option of pegging to something else and shifting the peg to mask the fact that it is no longer pegging to the US$.

If they were doing that, the chart would look like a relatively flat RMB¥/US$ rate, but with more volatility than if the RMB¥/US$ rate was directly pegged.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.