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Why China Has Actually Been Trump’s Best Friend In Guarding Against Yuan Depreciation
When the Trump administration labeled China a currency "manipulator" this week in the wake of the PBoC's decision to hit back at the latest US tariff threats by letting the yuan weaken past the psychologically-important 7 threshold, Steve Mnuchin doubtlessly knew the move was counterproductive.
Why? Simple: Over the course of the trade war, Beijing has sought to prevent excessive yuan weakness, not encourage it.
It's true that the currency has depreciated quite a bit over the last year and it'
I also wish reporters would ask these officials what techniques China should use to maintain the value of the yuan.
So now the narrative is that the administration’s new best friend has been helpful – uh, until they get insulted enough to say “Well just forget it, we’ll let it float!” A new tool in their toolbox?
Obviously “manipulation” was to strengthen the Yuan. Trump is like a spoiled kid that calls his parents names when he gets disciplined. Then Navarro opening his mouth on CNBC confirms the sentiment of Rex T.