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Is the Yuan (renminbi) currently overvalued or undervalued?

Is the Yuan (renminbi) currently overvalued or undervalued?

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Answer #1

The renminbi is classified as a fixed exchange rate currency with reference to a basket of currencies, which has drawn attention from nations which have freely floated currency and has become a source of trade friction with Western nations.

Some economists have argued that the value of the renminbi should be allowed to appreciate by 20 to 40 percent against the US dollar.According to the International Monetary Fund (IMF), the renminbi is undervalued somewhere between five and 27 percent.

It is currently undervalued.

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