With a report from the Treasury Department on May 10, the US has put away its favorite stick, and instead has offered an olive branch to China by saying that it is not a “currency manipulator”. Nevertheless, the US will continue to “actively and frankly” pressure China to relax exchange controls.
A report from Xinhua notes: “The exchange rate of RMB against US dollars has appreciated 3.4 percent by May 10 since the currency reform was introduced last year”. And the FT reports that the RMB has now broken through the important “psychological barrier” of 8 to the US dollar.
8 is, of course, a lucky number in China – representing wealth. It certainly seems to have done the trick for US-China trade relations. For the moment.
See news sources:
China appreciates US report saying China not manipulating currency
Xinhua – China
BEIJING, May 11 (Xinhua) — Chinese Foreign Ministry Spokesman Liu Jianchao said here Thursday that China appreciates the newly-released US current report …
China’s renminbi rises past psychological barrier
Financial Times – London,England,UK (Subscription needed)
China’s currency crept past 8.00 to the dollar for the first time on Monday, passing what the market had designated a psychological barrier for the renminbi …
See all stories on this topic