US ex­perts: China no cur­rency ma­nip­u­la­tor

China Daily (USA) - - FRONT PAGE - By CHEN WEIHUA in Wash­ing­ton

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

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.