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100 rmb to usd12/29/2023 ![]() 19ĭiscourse premised on morality obscures power struggles. 15 Designed under a colonialist mindset, 16 institutions such as the International Monetary Fund (IMF) 17 and the World Bank “remain in key aspects colonial in character.” 18 Within these institutions, developing countries have less of a say in both leadership and voting: by tacit agreement, leadership has long been selected from Europe or the United States, while the average person in the Global North is represented by eight times the number of votes as the average person in the Global South. With historical vestiges of colonialism allowing wealthy nations to enjoy disproportionate influence in fashioning the rules and language of international finance, 14 the developing world is frequently excluded from international policymaking and thus from generating discourse favorable to its position. ![]() Part III elaborates on China’s exchange rate regime and argues that, despite external pressures, China’s move toward greater exchange rate flexibility is driven largely by long-term domestic interests. After introducing the concerns that motivate an exchange rate regime, Part II summarizes the current monetary structure through the evolution of the Bretton Woods system, the lack of workable international standards, the resulting dominance of powerful states, and the prevailing importance of domestic interests in shaping international finance. Part I examines the Global North-South opposition in international finance and the moral underpinnings of arguments directed against China’s exchange rate policies. 13 Applied to a political-economy context, the RMB-USD case is a prime example of how the developed world, with the United States at the helm, infuses economic policymaking with a moral dichotomy, thereby allowing it to construct rules to its own advantage at the exclusion of emerging economies. relationship, highlighting the self-serving role of the dominant, Western-driven narrative. In the historical and legal fields, scholars have long emphasized the power imbalances in the Sino-U.S. dollar (USD), this Note applies an amoral framework to the exchange rate debate, arguing that there is no morality to a country’s exchange rate policy and that all countries are - and should be recognized as - driven predominantly by their domestic interests in determining exchange rates. 12įocusing on interactions between the RMB and the U.S. 10 Apart from the fact that this argument relies on controversial economics and an arguably simplified narrative, 11 its suggestive framing elevates established players onto a moral high ground - and thus helps justify preventing developing countries from independently pursuing their national interests. Department of the Treasury has alleged that “China is a urrency anipulator,” 9 while the media has featured allegations that China is weaponizing the yuan. 4 While the word “renminbi” (RMB) was literally Chinese to most Americans before 2003, 5 the United States has since led calls for China to adjust its exchange rate policy, 6 claiming that the value of the RMB contributes to the loss of American jobs, 7 the current account imbalance, and the ballooning federal deficit. ![]() As China’s international influence swells, countries affected by its actions have grown increasingly critical, especially of its exchange rate policy. Following China’s initiation of the open door and reform policies ( gaige kaifang) in 1978 and its accession to the World Trade Organization (WTO) in 2001, China and the global economy have become intertwined “in ways that profoundly changed both.” 3 1 Han dynasty China was already astoundingly international 2 - an outlook the country has regained in recent decades. Two millennia ago, on a crisp winter evening, thousands flocked to Chang’an’s luminous streets, jostling between carriages and merchant stands to glimpse the annual lantern festival.
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