In what way was the yuan revalued by China in 2005?

In 2005, China undertook a significant reform of its currency policy, leading to a revaluation of the yuan, also known as the renminbi, against the US dollar. Specifically, the yuan was revalued upward by 2.1% against the dollar, marking a shift from a fixed exchange rate system to a more flexible mechanism that allowed for greater market influences.

This decision was part of a broader move to adjust China's monetary policy and to address international pressures regarding the undervaluation of its currency. The change aimed to promote trade balance and was a response to calls from various countries for a more accurate reflection of the yuan's value on the international stage.

Understanding this context clarifies why the choice that indicates a revaluation of 2.1% against the dollar aligns accurately with historical events from 2005. Other options referring to different currencies or rates do not reflect the actual revaluation that occurred, as the primary focus during that time was on the yuan's relationship with the dollar, making this the correct choice.