Kenneth Rogoff Drops a Bomb: China's Currency Isn't Cheap—It's Dangerously Expensive

Harvard professor and former IMF chief economist Kenneth Rogoff has stunned the economics world by declaring the renminbi not undervalued, but dangerously overvalued. He argues that China's strict capital controls are the only thing preventing a massive currency crash if people were free to move money abroad. Rogoff points out that trade surpluses don't prove undervaluation—real confidence does. Massive capital flight in 2015, ongoing outflows in 2025, youth unemployment near 19%, collapsing real estate, and huge local debts have eroded that confidence. While China pushes renminbi internationalization, it quietly suppresses appreciation to protect exports—its last remaining growth engine. A stronger currency would kill factories; a freer one would trigger panic outflows. In short, China's economic stability relies not on strength, but on locking in capital and keeping the currency artificially weak. Rogoff warns: China is no longer pursuing global ambitions—it's in survival mode. Email me: chinaunveiled2000@gmail.com

Added 4 Apr 2026