What is Donald Trump talking about? Why Chinese economists are baffled by his latest Twitter outburst
US president’s claims of currency manipulation puzzle observers who point out there is no factual basis for the charge
Donald Trump’s latest comments about Chinese currency manipulation have bewildered many Chinese economists, who said they did not understand what the US president was trying to do.
“Russia and China are playing the currency devaluation game as the US keeps raising interest rates. Not acceptable,” Trump tweeted on Monday.
Despite the suggestion that China was devaluing its currency, the yuan has in fact been gaining on the dollar this year, largely because of the dollar’s weakness.
In the first three months this year, the yuan appreciated against the dollar by 3.7 per cent, the largest quarterly appreciation recorded, according to General Administration of Customs in China.
The president’s comments also run counter to a report released by the US Treasury Department last Friday.