Well-known Chinese news site Sina recently reported that the United States government once again expressed to China that it was dissatisfied with the Chinese currency exchange rate, saying the RMB to U.S. Dollar exchange rate was lowered artificially. In a recent meeting in Beijing, the U.S. Deputy Treasury Secretary Sarah Bloom Raskin asked the Chinese Finance Minister Lo Jiwei and the Chinese Central Bank Governor Zhou Xiaochuan to have the market determine the RMB exchange rate. The Chinese government tightly controls the RMB exchange rate. Every morning the Chinese central bank sets the central parity of the RMB against the U.S. dollar. However some analysts suggested that China’s purpose in artificially pushing down the Chinese currency is to raise the bar for speculators, not to use it as a weapon in trade.
Source: Sina, October 22, 2014