GO
Loading...
Live at 2:30p ET
LINDSEY VONN
CNBC.com web-only interview
Downhill skier Lindsay Vonn

China’s Floating Exchange Rate: CNBC Explains

You've probably heard about the global controversy surrounding the Chinese currency: international leaders have criticized the Chinese government for keeping the value of the Yuan artificially low, because an artificially undervalued Yuan has serious implications for international trade. Although the Yuan rose to historic highs in 2011, the U.S. has fallen short of accusing China of currency manipulation. Using a hypothetical example, Salman Khan of the Khan Academy explains the situation surrounding an undervalued Yuan.

From this video, you'll understand:

  • The effect of a floating currency on trade imbalances
  • How trade affects the demand for currency

Featured

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Latest Special Reports

  • To kick off our year-long anniversary, we created a list of top leaders, icons and rebels.

  • An era of innovation dominated by secretive corporate labs is ending. Time for you to help crowdfund the future.

  • CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference.

Central Banking Explained

Corporate Accounting Explained