Posted on 12/04/2016 4:27:40 PM PST by TigerLikesRooster
China, its Currency Brace for Impact of Trump Policies
BEIJING - On his first day in office, U.S. President-elect Donald Trump has said that one of the seven acts he will take to protect American workers is to label China a currency manipulator. Although analysts in China and in the United States are skeptical that he will follow through on that pledge and others such as tariffs on Chinese goods, Beijing is nervous, nonetheless.
Bracing yuan
Since Trump was elected last week, China’s currency has not only slipped to eight-year lows, dropping below a psychological threshold of 6.8 Chinese yuan to $1, but it was pressing close to 6.9 Chinese yuan to the dollar Friday.
That’s a level HSBC just days ago predicted the yuan would not reach until the end of this year.
The slide began to pick up steam earlier this week, when the People’s Bank of China, China’s central bank, set the daily value of the Chinese yuan, or RMB, against the U.S. dollar at 6.8495, 200 basis points lower than the previous day.
/snip
But that does not mean that taking actions such as exacting tariffs would necessarily be disastrous for the U.S. economy, Pettis said, adding that such talk is “nonsense.”
“If it is done in a clumsy manner, it is bad for the U.S.,” he said. “But if it is done wisely along with heavy doses of investments for infrastructure development in the U.S., it is not necessarily bad for the United States.”
(Excerpt) Read more at voanews.com ...
P!
This ain’t no party, this ain’t no disco,
this ain’t no fooling around
Another pre-inaugural win for Trump!
They RMB loses value, making Chinese goods cheaper to us dollar-payers. Am I missing something here? I’m not denying what Trump says about Beijing’s currency tactics but am just asking.
Wait, can’t they just build more empty cities and tell everyone they have 8-14% growth? Nooooo? So sad...
Gravy trains are derailing everywhere.
Maybe they can build aircraft carriers for Russia.
At least one.
Every major world power should have at least one aircraft carrier that works.
Yup. If the dollar grows stronger, we can buy more Chinese crap. Don’t expect many to understand.
Of course they're about to crash their economy anyway. I wouldn't buy any Chinese stock or hold any Yuan even if I was doing it with central_va's money.
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