‘China rushes to pull back the yuan from a three-year high’

Read the excerpt from article ‘China rushes to pull back the yuan from a three-year high’ below link and answer the question that follows.

https://www.cnbc.com/2021/06/03/china-sets-yuan-rmb-weaker-vs-us-dollar-for-first-time-in-a-week.html

In less than 800 words, evaluate the pros and cons of renminbi appreciation from China’s perspectives and discuss the underlying factors that affect a country’s exchange rate.

Sample Solution