US experts: China no currency manipulator
US economists and currency experts disagreed with the notion of labeling China a currency manipulator, a charge made by US President-elect Donald Trump during his campaign in the past year and half.
Trump’s words recall those by Republican candidate Mitt Romney in 2012, who pledged to name China a currency manipulator on his first day in office if elected. He lost to Barack Obama in the election.
Trump has not talked about the topic after winning the election on Nov 8, but some pundits and news organizations have kept the subject alive.
“The accusation that China is manipulating its currency in order to gain an unfair advantage for its exports is not supported by economic facts,” said Eswar Prasad, senior fellow at the Brookings Institution and professor of Cornell University.
Prasad said on Monday that for the past two years, China’s central bank, the People’s Bank of China, has in fact been intervening in currency markets to prevent the renminbi from falling too sharply in value against the dollar.
“Thus, China has been doing the US a favor by not letting the renminbi depreciate as much and as fast against the dollar as the markets seem to want,” said Prasad, author of the 2016 book Gaining Currency: The Rise of the Renminbi, and the 2014 book