Introduction

Dear readers,

Aim of this blog are discussed and analyse the fluctuations of the RMB in relation to the reserve of the US dollar (the largest in the world) through macroeconomic and political data. Additionally, I will structure this blog in a logical and dissuasive aspect that explains why the Chinese government is able to stand their position on the value of their currency despite pressures from both the US and European governments i.e. the government is pushing development in weaker economic zones (analysis of unemployment in those zones) in order to push internal and external investment in those zones.

In order to complete a full understanding of this blog, I will analyse data from China’s GDP i.e. Government expenditure, consumer expenditure, import, exports and investments.