Report says China peg impact overstated

Research published by the Federal Reserve Bank of Cleveland on Thursday 24 February said that China's exchange rate peg to the dollar has had less of an impact on its trade surplus with the United States than many observers have assumed.

In its monthly report the Cleveland Fed said that analysis of the trade impact of China's 10-year-old fix of the yuan at 8.3 per dollar often ignored relative inflation rates between the two countries and the fallout that has on China's competitiveness.

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