I don't follow... If the rate is about 8.25:1 then how is it pegged at 1:1?
The conversion rate from RMB into USD was about 8.25:1 and pegged to the U.S. dollar on a 1:1 basis.
To illustrate, assume the USD was converted into Euros at, say, 1 USD = 1 EUR. In this case 1 EUR could be exchanged for 8.25 Yuan. Now assume that the dollar loses one half of its purchasing power against the Euro. In the case, the collar would be converted at 2 USD = 1 EUR. Similarly, because it is pegged with the dollar, the RMB would be lose half of its purchasing power against the Euro and be exchanged at the rate of 16.5 Yuan = 1 EUR.