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China's Currency Devaluation (CRS Report for Congress)

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Release Date Aug. 17, 2015
Report Number IN10342
Report Type Insight
Authors Jackson, James K.
Source Agency Congressional Research Service
Summary:

On Tuesday, August 11, 2015, the People's Bank of China (PBC), China's central bank, surprised global financial markets by lowering the reference rate of the renminbi, effectively depreciating the currency, and adopting a new method for determining the currency's value. Some observers view this action as part of China's recent efforts to move toward a more market-oriented exchange rate--a view that could be reinforced if China allows its currency the same latitude to appreciate. Congress has had long-standing interest in how China manages its currency[.]