The Truth About China's Currency

In moving toward passage of the Currency Exchange Rate Oversight Reform Act, the U.S. Senate has sent the wrong signal to China, our fastest-growing export market.  We have told Beijing that we alone know the true value of the dollar-yuan exchange rate and have the authority to unilaterally penalize Chinese companies for pricing their products using the official exchange rate, which is deemed to undervalue the yuan by anywhere from 12% to 50%.