However, China is unlikely to give up any time soon the insurance against global currency volatility provided by capital account non-convertibility. Moreover, China maintains control over the value of the RMB as a powerful tool in face of the myriad challenges she is facing in transitioning to a more balanced, equitable and sustainable economy yet supported by a reasonably high rate of growth.
There are intricate social, economic, political, and international considerations China has to take into account in managing the value of the RMB rather than allowing it to be dictated freely by a global financial market dominated by the West or least of all, by the price of a Big Mac, however defined.
See a research note ''Currency War and the RMB: Monetary Policy, Imbalances, and the Global Reserve Currency System''
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