Eli5 Why is the value of the Chinese Yuan small compared to other countries (excluding US) even though it has the second largest economy in the world?

Question

Eli5 Why is the value of the Chinese Yuan small compared to other countries (excluding US) even though it has the second largest economy in the world?

In: 29

Answer 1

Two words: currency manipulation
China has the highest dollar reserves in the world.
It can swing the peg anyway it desires.