Tag Archives: Currency
China Busy Signing Currency Deals

China Busy Signing Currency Deals

China took one more step last week towards internationalizing the yuan, ultimately leading to the day when the Chinese currency will be a substitute for the U.S. dollar in all of China’s trade with other countries. Last Friday, China and Brazil agreed on a currency swap deal that will allow the central banks of each [...]

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A Convertible Redback

A Convertible Redback

One of our readers made a very thoughtful comment on our recent article regarding the internationalization of the yuan, which some now refer to as the “redback.” My reading of China’s monetary policy is that the country is more concerned about domestic inflation and the stability of the yuan than it is of the yuan’s appreciation [...]

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Is the Renminbi Undervalued?

Is the Renminbi Undervalued?

U.S. Treasury Secretary Timothy Geithner certainly thinks so. So do Democratic Senator Chuck Schumer and Republican Presidential hopeful Donald Trump. They all point to the massive trade deficit that the United States is running with China as evidence that the Middle Kingdom’s currency policy is giving Chinese manufacturers an unfair competitive advantage. As we’ve reported [...]

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Can China’s Relationship With The U.S. Take the Next Step?

Businessmen and diplomats certainly hope so. Expectations for Chinese President Hu Jintao’s trip to the United States are running high on both sides of the ocean. President Barack Obama is rolling out the red carpet, complete with the full pomp of a 21-gun salute and a black-tie dinner after Oval Office talks on Wednesday. People’s [...]

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Currency: The End of The Discussion With China

Last week’s G-20 meeting in Seoul, South Korea was intended to be the venue where President Barack Obama would turn up the heat on China to revalue its currency against the dollar. That’s not exactly what happened. In advance of the meeting, the Federal Reserve announced that it would buy $600 billion of Treasuries to [...]

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The Currency War: Post-Seoul

Those of us involved with China on a daily basis have been living with currency issues for a long time. Ever since China began racking up large trade surpluses with the United States, politicians and special interest groups in the United States have been charging that China keeps the renminbi undervalued in order to make [...]

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China and the Looming Currency Showdown in Seoul

The currency war is heating up, and battle lines are being drawn. The U.S. Dollar Index is near an all-time low, and the Federal Reserve is preparing another round of quantitative easing, flooding the world with even more greenbacks. Japan has looked on in alarm as the rise in the value of the yen is [...]

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The Great Currency Debate

On Thursday, the U.S. House of Representatives passed the Currency Reform for Fair Trade Act, which aims to crack down on Chinese currency manipulation by targeting imports from China and other countries with currencies that are perceived to be undervalued. With a final tally of 348 to 79, the bill was bi-partisan and passed with [...]

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China’s Impact on Global Currencies

China made headlines on June 19 when it announced that it would release the yuan from its dollar peg and allow the currency to float against a basket of currencies instead. While most China watchers cautioned that a rapid appreciation of the yuan was not in the cards, the conventional wisdom was that annual increases [...]

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China’s Currency Basket: One Month Later

On June 19, the Peoples Bank of China released the yuan’s peg to the U.S. dollar, and announced that it would instead peg the yuan to a basket of currencies. China regards the composition of the currency basket as a state secret, and officials haven’t publicly disclosed what currencies are being used in the basket. [...]

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