As job loses continue to mount in the United States–first-time claims for unemployment insurance recently rose by 22,000 to a seasonally adjusted 496,000–many political officials and ordinary citizens are looking for creative ways to stem the seemingly never-ending loss of jobs. One of the hottest issues in recent weeks has been China’s currency policy, which many feel has been grossly manipulated to give the country a significant advantage in the global economy. Some argue that the yuan is undervalued by as much as 40%, an advantage that makes it virtually impossible for American manufacturers to compete with cheap Chinese exports. [click to continue…]
President Barack Obama embarked this week on a critical trip to China, seeking to gain support for tougher economic sanctions against Iran during meetings with Chinese President Hu Jintao. But as the U.S. president was setting out to present his case, the controversy over the relative value of China’s currency, a delicate issue for U.S. officials, fired up once again. [click to continue…]
China’s central bank once again stated the need for reform of the international currency system to reduce over-dependence on current reserve currencies (read: the U.S. dollar). While the People’s Bank of China (PBOC) didn’t specifically mention the dollar in its statement, the desire to replace the greenback as a central component of many countries’ foreign [...]
