China remains firm in maintaining the value of its currency, the renminbi, despite mounting pressure from the United States. The growing US trade deficit with China, which reached $268 billion in 2008, has led some in Washington to push for labeling China a currency manipulator. However, China has only allowed a gradual appreciation of the renminbi since 2005, as shown by the exchange rate moving from 8.28 renminbi to the US dollar in July 2005 to 6.82 renminbi in March 2010.

1. China remains firm in the
Renminbi-standoff
 Momentum building in Washington to declare Beijing a currency manipulator
US Trade Balance in
Pressure on the Yuan is Mounting with China billion USD
8.04 2000 -83.8
8.0 7.98 Source: www.x-rates.com
7.8 7.86 2001 -83.1
7.74
2002 -103.1
7.6 7.55
2003 -124.1
7.4 7.42 2004 -162.3
July 2008
7.2 2005 -202.3
7.07 2006 -234.1
7.0
Chinese Yuans 2007 -258.5
6.8 to 1 USD 6.83 6.83 6.83 6.83 6.82 6.82
2008 -268.0
March 2006 to March 2010 – 4 month intervalls 2009 -226.8
March. 16, 2010
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