Appreciating Renminbi will not address global economic imbalance

There has been intensive debate recently on revaluing the Chinese currency, the renminbi (RMB). I would like to participate by presenting China's views in brief.

China instituted a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies in 2005. Between July 2005 when the reform started and the end of February 2010, the RMB appreciated by 21.2 percent against the US dollar and 8.2 percent against the euro in cumulative terms. At t...