• $755.4bn.

The renminbi or the Chinese yuan is the

currency of the People's Republic of China (PRC) and
its international currency sign is ¥.
• The renminbi is issued by the People's Bank of China,
the monetary authority of the PRC.
• Renminbi currency production is carried about by a
state owned corporation, China Banknote Printing
and Minting (CBPMC; 中国印钞造币总公司 )
headquartered in Beijing
• Till 21 July 2005 yuan was pegged with US
dollar, the peg was finally lifted, which saw an
immediate one-off RMB revaluation to 8.11 per
USD.The exchange rate against the euro stood
at 10.07060 yuan per euro.
• The RMB is now moved to a managed floating
exchange rate based on market supply and
demand.
• At 07.03.2010 the value of 1Dollar equal to
6.83Yuan
• China limits the appreciation of its currency by
using US dollars gained through its export
activities to purchase US debt.
• Low U.S. interest rates and the expected
depreciation of the American dollar encourage
investors to borrow dollars and invest in Asia,
where it may be encouraging additional
investment in China, a country that is already
drowning in too much investment.
• A weaker dollar will also boost the price of
commodities. This would push up production
costs for Chinese businesses and fuel domestic
inflation
• China is the largest holder of US treasuries. If
the dollar depreciates the value of dollar-
denominated assets will contract. This would
affect the purchasing power of China's colossal
foreign exchange reserves.
• If the U.S. dollar falls in relation to the
renminbi, it may be time to consider buying
Euros . As a result, the value of the Euro will
climb relative to the dollar. This may lead to
more U.S. imports to Europe over time.
• Falling in dollar Reduces the US current account
deficit. It should also reduce the Chinese current
account surplus. This may help reduce some of
the economic imbalances in the global economy.
• Over the long-term, if the renminbi continues to
appreciate, this means that major overseas
producers such as Nike would shift more of their
production to other developing countries, such as
Vietnam.
• One impact of a rising renminbi relative to the
dollar is that U.S. imports into China will become
relatively cheaper. Imported U.S. consumer goods
would suddenly appear to be cheaper to the
Chinese consumer.
• If dollar depreciates countries which export a
lot to the US may witness a fall in economic
growth. The Chinese government is worrying
about this situation.
• The Chinese Govt has announced the yuan
currency will soon replace the US Dollar as
the new Asian regional reserve currency