Yuan: Active Guidance Or Manipulation?

One man’s “manipulation” is another’s “active guidance”. A report from the finance ministry’s research institutes is advocating a steered weakening of the yuan to 6.93 against the dollar to help counter the slowdown in economic growth, Bloomberg reports.

The rate is currently 6.84, so that is not much by way of weakening and the report makes a point of saying that devaluing the yuan will do little in itself to stimulate the economy. Nor will such comments do much to disarm critics of China’s currency policy, especially those in the U.S.

Leave a comment

Filed under China-U.S., Economy, Markets

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s