Based on the  table, in 2015, is dollar (USD) overvalued or undervalued against the yuan (CNY)? Explain your answer. Calculate the value of the real exchange rate between yuan (CNY) and dollar (USD), qY/$ yuans per dollar?

 

1 1 1 1 1 1 Actual Data 01/01/2000 EUR CHF CNY GBP IDR INR JPY KRW RUB USD BRL EUR 1.000 1.602 8.323 0.622 7087 43.7 102.7 1138.3 27.6 1.005 1.870 0.120 0.193 1.000 0.075 852 5.2 12.3 136.8 3.3 0.121 0.225 CNY USD 0.995 1.594 8.280 0.619 7050 43.4 102.1 1132.3 27.5 1.000 1.860 Actual Data EUR 01/01/2015 EUR CHF CNY GBP IDR INR JPY KRW RUB USD BRL 1.000 1.203 7.500 0.777 15082 76.4 144.3 1323.7 73.3 1.210 3.215 0.133 0.160 1.000 0.103 2010 10.2 19.2 176.4 9.8 0.161 0.428 USD 0.827 0.994 6.203 0.642 12467 63.2 119.3 1094.1 60.5 1.000 2.657 Based on relative PPP CNY 01/01/2015 EUR CHF CNY GBP IDR INR JPY KRW RUB USD BRL 1.000 1.266 8.385 0.620 14927 84.6 73.4 1247.8 102.2 1.027 3.474 0.119 0.151 1.000 0.074 1780 10.1 8.7 148.8 12.2 0.122 0.414 1.008 1.233 8.167 0.604 14539 82.4 71.5 1215.3 99.5 1.000 3.384 1 EUR 1 CNY 1 USD