{"id":48211,"date":"2019-09-03T14:10:30","date_gmt":"2019-09-03T19:10:30","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48211"},"modified":"2019-09-03T14:11:24","modified_gmt":"2019-09-03T19:11:24","slug":"chinese-currency-manipulation-trumps-petard","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48211","title":{"rendered":"Chinese Currency Manipulation&#8211;Trump&#8217;s Petard"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.cobdencentre.org\/2019\/08\/chinese-currency-manipulation-trumps-petard\/\">CHINESE CURRENCY MANIPULATION \u2013 TRUMP\u2019S PETARD<\/a><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The risk that the Sino-US trade war morphs into an international currency war has risen<\/li><li>The US$ Index is up since 2010 but its only back to the middle of it range since 2000<\/li><li>The Chinese Yuan will weaken if the Trump administration pushes for higher tariffs<\/li><li>Escalation of domestic unrest in Hong Kong will see a flight to safety in the greenback<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">According to the US President, the Chinese are an official currency manipulator. Given that they have never relaxed their exchange controls, one must regard Trump\u2019s statement as rhetoric or ignorance. One hopes it is the former.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Sino-US relations have now moved into a new phase, however, on August 5<sup>th<\/sup>, after another round of abortive trade discussions, the US Treasury officially designated China a currency manipulator too. This was the first such outburst from the US Treasury in 25 years. One has to question their motivation, as recently as last year the PBoC was intervening to stem the fall in their currency against the US$, hardly an uncharitable act towards the American people. As the&nbsp;<strong><a href=\"https:\/\/www.economist.com\/finance-and-economics\/2019\/08\/06\/the-trump-administration-labels-china-a-currency-manipulator\">Economist \u2013 The Trump administration labels China a currency manipulator<\/a><\/strong>&nbsp;\u2013 described the situation earlier this month (the emphasis is mine): \u2013<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>After the Trump administration\u2019s announcement of tariffs on August 1st added extra pressure towards devaluation, it seems that the PBOC chose to let market forces work.&nbsp;<strong>The policymaker most obviously intervening to push the yuan down against the dollar is Mr Trump himself.<\/strong><\/em><\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">China does not meet the IMF definition of a \u2018currency manipulator\u2019 but the US Treasury position is more nuanced.&nbsp;<strong><a href=\"https:\/\/www.cfr.org\/in-brief\/china-manipulating-its-currency\">CFR \u2013 Is China Manipulating Its Currency?<\/a><\/strong>&nbsp;Explains, although they do not see much advantage to the US: \u2013<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u00a0\u2026click on the above link to read the rest of the article\u2026<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CHINESE CURRENCY MANIPULATION \u2013 TRUMP\u2019S PETARD The risk that the Sino-US trade war morphs into an international currency war has risen The US$ Index is up since 2010 but its only back to the middle of it range since 2000 The Chinese Yuan will weaken if the Trump administration pushes for higher tariffs Escalation of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[2913,7844,827,839],"class_list":["post-48211","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-currency-manipulation","tag-donald-trump","tag-united-states","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48211"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48211\/revisions"}],"predecessor-version":[{"id":48213,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48211\/revisions\/48213"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}