Chinese Currency: To Appreciate Or Not to Appreciate--That's the Question‪.‬

ABSTRACT This paper discusses the pros and cons of appreciating the Chinese currency. The Governmental stances and views of economists and businessmen both for and against the RMB appreciation are discussed, followed by the analysis of the fundamental motives of American and Japanese government and industrialists for pressing China to revaluate RMB. This is followed by a brief discussion and analysis of what should be done about RMB's value. This paper concludes that it is not in the interest of China to appreciate RMB at the moment or in the near future. Before China succeeds in systematic structural reforms and its economy gets strong enough to withstand risks of RMB appreciation, it should and will maintain the current RMB-dollar exchange rate.