China currency wars FX yuan

Suddenly, China Isn’t A Currency Manipulator Anymore

And therein lies the irony.

China was a currency manipulator for all of five months. With Liu He and a Chinese delegation that will reportedly include PBoC boss Yi Gang set to arrive in Washington this week for the signing of the "Phase One" trade deal with Donald Trump, Steve Mnuchin is set to lift the derisive "manipulator" label. The news - which crossed on Monday just before lunchtime stateside - gave the offshore yuan an extra bump. It's through 6.89 now. The Chinese currency had already reached its strongest levels against the dollar since August, while mainland equities are perched near two-year highs. Treasury formally slapped China with the label on August 5, just after the PBoC let the offshore yuan breach the psychologically important 7-handle for the first time following Trump's tariff escalation on August 1. Global assets recoiled as the yuan careened lower in what some feared would end up being a repeat of the August 2015 episode. The "manipulator" tag was always somewhat absurd - and not because China doesn't control the yuan. Rather, because Trump is his own worst enemy when it comes to triggering bouts of depreciation in the Chinese currency, as is clear from the simple chart in the
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