I last wrote about Trump claiming currency manipulation on China earlier this week, and it sounded questionable at the time. While I stand by the fact-checking that was done within the article, China is losing credibility by the day.
As of the writing of this article, since late Tuesday, China’s yuan edged down about 0.4% to 7.0488 yuan to the U.S. dollar. This is dangerously close to the politically driven threshold of 7 yuan to the 1 USD; this is why you’ll hear discussions in Washington, mostly from Trump’s administration, of the possibilities of sanctions on China.
While the reports from the Federal Trade Commission that come out twice a year have stated clearly that there is not enough qualifying evidence to categorize China as a currency manipulator, Trump’s claims are starting to gain some legs as the Chinese yuan slowly plummets below 7 to 1.
Get the fine details of this story here.
By Marc Charles for Money Talk Radio
Sources: Associated Press
“Three more Central Banks cut rates.” Our problem is not China - We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege - Our problem is a Federal Reserve that is too.....
— Donald J. Trump (@realDonaldTrump) August 7, 2019