PBOC: China Not a 'Currency Manipulator'

[Dr. Who]

Market forces didn't do anything to the Yuan. The Chinese government lowered the value of the Yuan.

China refuses to peg the Yuan to a the dollar or anther currency because if they did the Yuan would collapse inside a week.

Why should they pander to the currency traders? That's like hitching your wagon to the emotional responses of lemmings. Great if you start the selling trend so you can wait and pick up that currency for fire sale prices and then just wait until it goes up again. It's part of the reason for economic instability in the world. The US dollar being both the reserve currency and the petro dollar doesn't experience the volatility that other currencies do. That volatility costs individuals and businesses big time. I don't blame China for refusing to play that game.

[bulletbob]

""The US labeling is an arbitrary unilateral and protectionist practice, which seriously damages international rules and will significantly impact the global economy and financial markets," the People's Bank of China said in a statement, expressing deep regret over the US Treasury's decision." ............""A country cannot be designated as a currency manipulator only because of one or two days' exchange rate fluctuations," he said."........""Market forces drove the yuan down, thanks to Trump's latest tariff threat," said Gary Hufbauer, an economist at the Peterson Institute in Washington. He said China's action was not "manipulation" but rather a decision by the PBOC not to intervene. "......"The renminbi's fall is not currency manipulation but the exact opposite, said Ann Lee, a specialist in China's economic relations at New York University. "China's regulators are probably just going to let it follow market forces at this point instead of using its precious dollar reserves to defend the currency," Lee said.".........https://sputniknews.com/asia/2019081...y-manipulator/

pjl if you buy that story I have a station in Australia that is raising kangaroo for meat 200,000 square miles . we clip their wings so they cant fly and jump sales are 1 billion a year its yours for 100.00 in sliver penny's and a diet sprite.
we have existing contracts with china and Russia and Iran for all the meat and dung we can produce.

[Rationalist]

""The US labeling is an arbitrary unilateral and protectionist practice, which seriously damages international rules and will significantly impact the global economy and financial markets," the People's Bank of China said in a statement, expressing deep regret over the US Treasury's decision." ............""A country cannot be designated as a currency manipulator only because of one or two days' exchange rate fluctuations," he said."........""Market forces drove the yuan down, thanks to Trump's latest tariff threat," said Gary Hufbauer, an economist at the Peterson Institute in Washington. He said China's action was not "manipulation" but rather a decision by the PBOC not to intervene. "......"The renminbi's fall is not currency manipulation but the exact opposite, said Ann Lee, a specialist in China's economic relations at New York University. "China's regulators are probably just going to let it follow market forces at this point instead of using its precious dollar reserves to defend the currency," Lee said.".........https://sputniknews.com/asia/2019081...y-manipulator/

China is a currency manipulator to the extent that they don't have a true floating exchange rate. The market has more effect on their currency now than it did 15 years ago, but the renminbi doesn't operate the same way as most other major currencies.

[MMC]

Why should they pander to the currency traders? That's like hitching your wagon to the emotional responses of lemmings. Great if you start the selling trend so you can wait and pick up that currency for fire sale prices and then just wait until it goes up again. It's part of the reason for economic instability in the world. The US dollar being both the reserve currency and the petro dollar doesn't experience the volatility that other currencies do. That volatility costs individuals and businesses big time. I don't blame China for refusing to play that game.

Have you asked Hong Kong?

[Peter1469]

China has not devalued the yuan , it has allowed market forces to devalue the yuan (like sanctions in the midst of a trade war) ...."Since April, the yuan has fallen by almost 8 percent against the U.S. dollar. This has led many analysts and politicians to speculate that China is intentionally trying to devalue its currency to offset the effect of President Donald Trump’s tariffs. It almost certainly isn’t. In theory, the price of the yuan is set by a basket of more than 20 currencies, many of which are either pegged to the dollar or managed implicitly against it. Consequently, the value of the yuan is effectively the opposite of a U.S. dollar index; when the dollar goes up, the yuan goes down, and vice versa. In recent weeks, though, the yuan has been falling quite quickly. Prior to the imposition of tariffs, as the dollar was rising, China appeared to be keeping its currency above the level predicted by the basket. But since the trade war started in earnest, it has let the yuan drop rapidly closer to the implied value. That quick decline has prompted worries that China might be engaging in competitive devaluation. A closer look at the numbers, however, should dispel this fear. Since January, the broad U.S. dollar index has risen 8.5 percent, while the yuan has fallen only 6.1 percent against the dollar. In the same period, the broad MSCI Emerging Markets Currency Index has declined by 6.4 percent — almost perfectly matching the yuan and suggesting that, if anything, China’s currency needs to fall further to reach the level implied by the basket. Moreover, even as the yuan declined in the second quarter, China had net settlement inflows of $32 billion. That surplus combined with a declining currency further suggests that China is simply pegging the yuan’s value to the basket...........https://www.bloomberg.com/opinion/ar...rrency-falling

Incorrect.

[Peter1469]

Why should they pander to the currency traders? That's like hitching your wagon to the emotional responses of lemmings. Great if you start the selling trend so you can wait and pick up that currency for fire sale prices and then just wait until it goes up again. It's part of the reason for economic instability in the world. The US dollar being both the reserve currency and the petro dollar doesn't experience the volatility that other currencies do. That volatility costs individuals and businesses big time. I don't blame China for refusing to play that game.

Lowering the value of your currency is currency manipulation. World markets freaked when Trump said he could lower the value of the USD.

[bulletbob]

pjl if you buy that story I have a station in Australia that is raising kangaroo for meat 200,000 square miles . we clip their wings so they cant fly and jump sales are 1 billion a year its yours for 100.00 in sliver penny's and a diet sprite.
we have existing contracts with china and Russia and Iran for all the meat and dung we can produce.

this is of course a limited offer as the great one sanders has been resurrected from kentuckys half acre of hell and I want to invest in his new fried pigeon recipe .

[bulletbob]

Trump's claim that China is engaging in currency manipulation is more aimed at impressing his supporters .....he knows why the yuan has dropped . If he doesn't know , then he is not as smart as he needs to be.

Are you sure its not the high price of kangroo meat and dung hurting them

[Captdon]

Why should they pander to the currency traders? That's like hitching your wagon to the emotional responses of lemmings. Great if you start the selling trend so you can wait and pick up that currency for fire sale prices and then just wait until it goes up again. It's part of the reason for economic instability in the world. The US dollar being both the reserve currency and the petro dollar doesn't experience the volatility that other currencies do. That volatility costs individuals and businesses big time. I don't blame China for refusing to play that game.

I don't blame them either. It simply a move to overcome the tariffs. It won't work. We can keep raising the tariffs until we destroy their economy. How do you feel about that game?

[Dr. Who]

I don't blame them either. It simply a move to overcome the tariffs. It won't work. We can keep raising the tariffs until we destroy their economy. How do you feel about that game?

They're going to fight fire with fire. Why not? They are the future dominant economy of the world. They are not bought and paid for by a handful of global juggernauts. They still control their own destiny.