China's foreign exchange reserves – a currency policy with risks and side-effects

The Chinese central bank has built up very large foreign exchange reserves over many years through systematic interventions, leading to a targeted undervaluation of the RMB. Other countries have criticised this currency policy as a form of unfair competition but there have been risks for China as well. Lately the country has changed course.

China's foreign exchange reserves – a currency policy with risks and side-effects(PDF, 128 KB, non-accessible)