Source: St. Louis Federal Reserve Branch, http://research.stlouisfed.org/fred2/series/EXCHUS/downloaddata?cid=95

Yuan Exchange Rate (per USD), 1981-2009 (Monthly)

China has actively used monetary policy as a tool to promote its export-oriented growth strategy through the debasement of its currently, the Yuan. In the 1990s the Yuan was systematically debased from roughly 3.7 Yuan per USD to 8.3 and left to that level for more than a decade. These made Chinese goods cheap in American dollars and exports increased significantly. The price paid for this export subsidy is substantial inflation within the Chinese economy as it confers higher prices for imported commodities such as food, minerals and energy. However in 2005 facing pressures from the American government as well as rising commodities prices, such as petroleum, the Chinese government started to gradually revaluate its currency and introduced a managed floating exchange rate. However, from 2008 the exchange rate stabilized around 6.8 Yuan per USD in view of declining economic conditions and a drop in American imports from China. The exchange rate between the Yuan and the US dollar remains one of the most controversial monetary and trade issue in teh global economy.