China's Currency Policy Approaches Breaking Point

China manipulates. But so does the US. The question is, who manipulates more?

I do hope they keep manipulating for volatility.

Right off the bat, manipulating currency value in an open market is stupid. Never worked before and never works ever. Those central bankers just never learn. All they want is this ego trip.

China's economy is slowing down. WHY do they think it's a good idea to use up its foreign currency reserve to defend its currency to drive up its value? To make Chinese exports even less competitive on the world market so less people will be buying them and China's economy can slow down further? China is a net exporter if they haven't noticed. They were pushing down their currency value when their economy was at its highest point and now their economy is really at a low point and all of sudden they want their currency to stay strong?

Oh yes I know so currency speculators like George Soros can't profit from the eventual devaluation of the Chinese currency so it's worth it to prop it up with hard-earned foreign currency reserves aka US greenbacks and of course at the same time helping US push down its currency so US exports can become more competitive. Nice thinking China!

Keep in mind a lot of forex trading is just games.

Trading is the name of the game, and the game for China is weak exports. You must consider the larger trend. That does not change. China will remain a net exporter and their currency will remain weak ... at least until Trump does something about it!

Well they are not waiting for Trump to do it. They are doing it themselves. LOL

By wasting $2 Trillion of foreign currency reserve???!!! That's one expensive game... LOL

When the world compare CNY with backing vs USD without backing, the currency war will commence, when US lose, they will start war to generate demand, history already happened so many times, US simply no gentlemen in all case.

China dropping US treasury bill is the starting point of restoring the right order for the currency world, who needs useless paper that can print as and when needed?

I don't know what chart you are looking at... but CNH remains weak and has been so since the beginning of this week. With the first target being 6.900.

I am not sure what you are talking about? (note I do not live in China)

Wasting dollars mean they bought their own currency which would lead to a strengthening of Yuan.

Sorry for that last post... I think I got caught up in the words (sorry, I've had a few!). Although I was not wrong, it seems it was a bit misleading.

I meant to say that indeed, the Chinese Yuan is weak and you are correct in saying it is a waste of money to strengthen the Yuan. But perhaps that was never their intention in the first place ...? Or, maybe it was, but for reasons that can not be explained, or simply defy logic.