If one US dollar is worth more than a Chinese Yuan....?

Question

Does that mean our economy is stronger?

Answer 1

Not at all.  The particular size of the unit of currency used in a country says very little about its economy.  The various currencies are not meant to represent the same amount of "wealth" so comparing them by value is not meaningful.  It's just different units.

Suppose the U.S. decided one day that from now on the base unit of currency is the Twenty (worth 20 of the old dollars).  So now instead of something costing 100 dollars, they now cost 5 twenties.  Instead of having 2000 dollars in the bank, you now have 100 twenties.  You haven't gotten any richer or poorer, fundamentally the economy has not changed, but now the number quoted for the exchange rate with every other currency is 20 times higher, solely because we've decided to measure in a different unit of wealth.

*Changes* in the exchange rates between two countries matter a lot.  If one currency is worth $0.20 one year and $0.30 the next, then it's fair to say the economy that currency represents is doing better than the US (all its inhabitants have gotten 50% richer over a year as measured in $), but the specific value doesn't mean anything.

Answer 2

No. It simply means that people are willing to buy and sell Yuan and dollars at the current exchange rate. That is, they can buy roughly the same value of goods and services using that exchange rate.