A (Lack of) Progress Report On China's Exchange Rate Policies

This working paper assesses the progress made in improving China's exchange rate policies over the past five years (that is, since 2002). The author first discusses four indicators of progress on China's external imbalance and its exchange rate policies - namely, the change in (and level of) China's global current account position, movements in the real effective exchange rate of the Renminbi (RMB), the role of market forces in the determination of the RMB, and China's compliance with its obligations on exchange rate policy as a member of the International Monetary Fund (IMF).