Isn't it fascinating, China is doing the US a big favor, the Yuan would easily be at 9 or 10 if it was a free floating currency.
They are a currency manipulator but they manipulate it exactly in the direction Trump wants, they keep it strong for quite a while now . Yet they get buckets of shit poured over their heads !?
Obviously Trump should give them a medal instead, but the guy is so off his rocker that they probably will face sanctions soon. Lesson learned: Let's do what we want you'll never get any appreciation of these clowns.
Joined Oct 2008
Status: Price made me do it. (0.0)
The Chinese Government sets its exchange rate...
If they would let their currency truly float who knows where it would go...
Since Chinese bonds give better interest than US bonds it would stand to reason that their currency would strengthen versus the Dollar. The caveat to watch out for is economic instability. Capital should retreat to the stronger more reliable currency. Given these two points, we are most likely at an equilibrium. If the RMB was allowed to float it is 50/50 as to whether it is up or down depending on how much manipulation has taken place.
Not to mention the capital limits placed on Chinese citizens as to which assets they can purchase and where and how much.
This currency is absolutely manipulated, but it is more likely that it is weakened to give an advantage to its own growth and industry.
This is nothing new. The US and EVERY nation has done this to some degree.