As Trump Threatens To Enter ‘Currency Manipulation Game’, Here’s How FX Intervention Works
On Wednesday, Donald Trump took to Twitter to accuse Europe and China of currency manipulation for the umpteenth time in the past 13 months.
Although Trump's "manipulation" allegations date back years, in the context of his presidency it's easiest to trace things to July 2018, when, following a landmark interview with CNBC's Joe Kernen which marked the first time the president had openly criticized Jerome Powell, Trump unleashed a series of tweets that suggested he might be prepared to interven
When euro was introduced on the 1st January 1999, the EURUSD rate was 1.17, not far from current 1.13. So it’s not clear from where this idea that Europe manipulates its forex springs out. After 20 years the exchange rate is still the same
Maybe it’s a lot of nudging to keep the currencies within a certain range or limit?
‘The cleverest trick used in propaganda against Europe during the Trade War was to accuse Europe of what our enemies themselves were doing,”
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