Rome–Donald Trump, the soon-to-be Republican presidential nominee, has been shouting out a complaint that China is driving down the value of its currency to make its export pricing more attractive and increase the market for the country’s excess production of everything from steel to mini telephones.
Well, Trump is not the only one. Much economic news has been focused on the impact of Britain’s vote to leave the European Union, which has driven down the value of the pound and created volatile stock market activity worldwide. In the meantime, the Yuan, China’s currency has continued a year long plunge prompted by the Beijing government policy to drive it down, and is a danger some economists say. Others think it all works out over time with no harm done.
For sure, there are several countries trying to gain some advantage by devaluing their currency. The Euro and the Yen are two of them. So are East Asian countries hoping not to be squeezed by the Yuan devaluation. For the moment, the US dollar has been strengthening on the Brexit fears. Will all this put a brake on America’s precarious growth? Hard to figure, though it won’t stop Trump from talking–and claiming that China’s export growth comes at expense of US manufacturing–and jobs.
The Telegraph warns of a currency war.
WSJ says nothing to see here.