President Donald Trump has argued over the last couple of years that China has been manipulating its currency – the yuan – in order to gain a competitive advantage over the U.S. and other countries.
How has Beijing ostensibly manipulated the yuan? By suppressing it and ensuring it doesn’t appreciate.
Has this been the case? For several years, the yuan had actually gained in value. It wasn’t until the recent collapse that the currency has seen its value tumble, and most experts agree that the People’s Bank of China (PBOC) is not instituting policies to keep the yuan down.
And, finally, the U.S. Treasury has agreed that China is not a currency manipulator.
The Treasury will replace a report on Monday that confirms this stance.
From Politico:
The report submitted internally to Treasury Secretary Steven Mnuchin did not recommend that Beijing be labeled a currency manipulator and continued to place China on a monitoring list, an administration official familiar with the report told POLITICO.
Do you know the biggest currency manipulator in the world? The Federal Reserve.
Leave a Comment