Trump Administration Labels China a “Currency Manipulator”: What’s behind the accusation, and who’s right?

Posted on by Farok J. Contractor

© 2019 Farok J. Contractor, Rutgers Business School At 5 o’clock in the morning on August 5, 2019, unable to sleep, Trump tweeted about China—not for the first time accusing it of being a “currency manipulator,”[1] and describing this as a “major violation.” (See Figure 1 below.) Treasury Secretary Mnuchin followed with an official announcement … Continue reading Trump Administration Labels China a “Currency Manipulator”: What’s behind the accusation, and who’s right?

Four Salient Facts about the Chinese Yuan

Posted on by Farok J. Contractor

© 2017 Farok J. Contractor, Rutgers Business School On February 23, 2017, just hours after his new Treasury secretary pledged a more methodical approach to analyzing Beijing's foreign exchange practices, President Donald Trump declared: "Well...I think they're grand champions at manipulation of currency. So I haven't held back.... We'll see what happens."  — Reuters Four Salient Facts: … Continue reading Four Salient Facts about the Chinese Yuan

Update: Is China a “currency manipulator”? Donald Trump says so

Posted on by Farok J. Contractor

SEE UPDATED POST, AUGUST 11, 2019: Trump Administration Labels China a “Currency Manipulator”: What’s behind the accusation, and who’s right? © 2016 Prof. Farok J. Contractor, Rutgers Business School This article is a 2016 update of my original post of November 16, 2015. It has also been published on The Conversation as Does China manipulate its currency … Continue reading Update: Is China a “currency manipulator”? Donald Trump says so

The Simple Math: How a Mere Quarter-Percent Interest Rate Hike Can Produce Big Swings on Bond Prices and Foreign Exchange Rates

Posted on by Farok J. Contractor

© 2015 Prof. Farok J. Contractor, Rutgers University Bah! Humbug! What can a mere quarter-percent hike in the Federal Reserve Bank’s interest rate do to markets? It seems so small a change as to be trivial. For two years prior to Janet Yellen’s appointment as Chair in January 2014, her predecessor, Ben Bernanke, and the business … Continue reading The Simple Math: How a Mere Quarter-Percent Interest Rate Hike Can Produce Big Swings on Bond Prices and Foreign Exchange Rates

Is China a “currency manipulator”? Donald Trump says so

Posted on by Farok J. Contractor

© 2015 Prof. Farok J. Contractor, Rutgers University After 20 years, the Chinese government must be used to it—being bashed by US politicians and Congress as a “currency manipulator.” Indeed, the exchange value of the yuan (or renminbi [RMB]) is fixed each morning by its central bank, the People’s Bank of China (PBoC), with a … Continue reading Is China a “currency manipulator”? Donald Trump says so