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Put another way, Germany's real exchange rate within the zone has depreciated by 10%.
One reason for this is the fixed exchange rate within the euro zone.
The International Monetary Fund said China's move to make the yuan more responsive to market forces appeared to be a welcome step and that Beijing should aim to achieve an effectively floating exchange rate within two to three years.
Then again, many countries nominally float but, for various reasons, often due to some form of liability dollarisation, intervene so as to keep the exchange rate within relatively narrow margins.
It hopes to join the ERM-2 (a pledge to keep the exchange rate within agreed bounds for two years) early next year in order to qualify for euro membership by 2012.
Analysts say it has wanted to send a signal of confidence about the economy.The IMF recognises that more reform is needed, calling on China to implement a truly floating exchange rate within three years.
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Sharply fluctuating exchange rates within Europe, which caused havoc for companies as recently as 1993, have been virtually eliminated.
Soon after the breakdown of the Bretton Woods system, some of these countries experimented with fixed exchange rates within their group.
Currency unions should boost internal trade because companies and individuals no longer incur costs for changing money and because uncertainty about exchange rates within the union is eliminated.
Several months after the Smithsonian Agreement, the six members of the European Economic Community EECC) agreed to maintain their exchange rates within a range of 2.25 percent of parity with each other.
A wave of speculative attacks temporarily destroyed the capacity of EU countries to maintain exchange rates within the European Monetary System.The EMS had been launched in 1979 to help stabilise exchange rates across the European Community.
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