I don’t see them manipulating their currency down now, but up.
It’s the US dollar that’s changed, not so much the Yuan.
The Yuan has lost about what the Dollar has gained.
... though the Yuan has weakened, so have every other currency in Asia.
But I think it is a good move for Trump to get ‘manipulation’ claim in motion. China may make huge interferences soon.
Ha!
I was just wondering if China may confiscate it’s people’s gold to get thtough this mess.
“I don’t see them manipulating their currency down now, but up.”
They have to support their currency, to keep it pegged to the dollar.
They chose to adjust that peg, precisely to offset tariffs - which is what is forbidden by the trade rules.
If China’s economy implodes at some point, a significant devaluation of their currency is likely to be either a major cause, or a major effect.
A lot of things in China’s economy are not really worth what they say, and their currency is one of them.
“I think it is a good move for Trump to get the ‘manipulation’ claim in motion. China may make huge interferences soon.”
The designation may have been (probably was) more to prevent such bigger future actions by China, than to address the recent move past 7 to the dollar.
Lets them know we are watching like hawks.
“I was just wondering if China may confiscate it’s people’s gold to get through this mess.”
China has been building up Gold reserves over the last year (kind of steady, not dramatically, but significantly).
If things hit the fan, anything goes with the communists. It is not too practical to go after individual’s gold in their homes, but large deposits in banks, as well as accounts based in foreign currencies, could be some prime targets.