Smith Faculty Opinion Article

Peter Morici By Dr. Peter Morici, Professor of International Business
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June 21, 2010

For the Record: History of Yuan Appreciation

It has been stated widely in the press that China permitted the yuan to rise more than 20 percent by from July 2005 to July 2008. For example, the Wall Street Journal makes that assertion in this story.

According to daily trading data published by the Federal Reserve Board, the yuan traded at 8.2765 on July 20, 2005 and 6.8271 on July 21 2008.

That is a 17.5 percent increase--far less than 20 percent.

The yuan did not change much subsequently, until this weekend's announcement.

Peter Morici is a professor at the University of Maryland School of Business and former Chief Economist at the U.S. International Trade Commission.