Thursday, March 25, 2010
China Officials Wrestle Publicly Over Currency
This article describes the current conflict in China between the Chinese central bank and the commerce ministry over whether or not to let the remnimbi rise against the dollar. China has been accused by the United States of keeping their currency artificially low against the dollar to keep their export industry competitive, which hurts other economies. This economic issue has been turned into a political issue, with the Chinese feeling as though the United States is interferring too much with Chinese economic policy.
Subscribe to:
Post Comments (Atom)
I myself think it is possible for Chinese government to control the currency. They have a great amount of reserve in dollars from export. This amount become a supply of dollars to the market to keep its own currency value against the U.S dollar value unchanged, which is harmful for the U.S economy at the moment.
ReplyDeleteI think this issue turn into a political issue eventually because of unfair manipulation.