(Answered) China has used a fixed yuan exchange rate and a crawling peg exchange rate. In both cases, China…

➤ How does a crawling peg differ from a fixed peg in practical terms?
A fixed peg sets a constant exchange rate against the dollar. A crawling peg allows small, systematic adjustments over time. That approach lets authorities correct real misalignment gradually, reduce speculative attacks, and respond to inflation or competitiveness without a single abrupt revaluation or devaluation.