Business, Management and Accounting
8 years ago

RMB Exchange Rate Set to Appreciate Long-Term, Impacting Global Economies.

Journal of Hefei University of Technology
Analysis of the Lasting Trend of the Exchange Rate of RMB Based on ICP's Datum in 2005 Year
Zhang Li

Paper Summary

The article analyzes exchange rates and purchasing power in different countries in 2005. Developing countries' exchange rates will move closer to purchasing power parity during periods of growth. Developed countries' long-term exchange rates match purchasing power parity. The Chinese currency, RMB, is expected to appreciate in the future based on dynamic purchasing power parity theory.

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