By keeping the renminbi artificially low, the central government makes Chinese exports cheap in foreign countries.
Brazil and India, beginning in April, publicly backed calls for Beijing to let the renminbi trade freely.
Beijing needs to be concerned that a weakened Obama will be in no position to veto legislation targeting the renminbi.
And the most important of these policies is the fixing of the renminbi to the dollar.
Up until then, the Chinese central bank had pegged the value of the renminbi to the dollar.
The lower the value of the renminbi, the cheaper Chinese exports and the more expensive the American exports.
When Beijing pays for those dollars with renminbi, it inflates its own money supply.
currency introduced 1948 in China, from Chinese renminbi, from renmin "people" + bi "currency."