Trump complained in a Bloomberg interview that China is trying to devalue it’s currency, and his administration is studying whether to name China as a currency manipulator. Additionally, he’s looking into the “formula” for deciding who’s doing currency manipulation. Separately, it’s reported that Trump is ready to impose 25% tariffs on USD 200B in Chinese goods as soon as public hearing ends next week. And he told Bloomberg that, “we are a much stronger country,” and “nobody’s waiting us out. Our country is stronger than it’s ever been financially.”
At the same time, the People’s Bank of China set the reference rate stronger than estimates for 17 days in a row, to slow the Yuan’s decline. The currency’s fixing was 0.1% stronger than the average forecast in a Bloomberg survey. It’s a consensus among traders and analysts that the market doesn’t want to bet against PBoC for now, as the central bank and the government are ready to deploy further “manipulative” policies to support Yuan’s exchange rate and stabilize it.
Trump is either living in an alternative world, or his compulsive lying is again in effect.
Btw, here a report of a former top treasury official blasting Trump as woefully wide of the mark on Yuan manipulation.
