Peoples Daily: The farce of splashing the dirty water of manipulating exchange rate will end in failure

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 Peoples Daily: The farce of splashing the dirty water of manipulating exchange rate will end in failure


The US Treasury brutally labeled China as a currency manipulator after the offshore and onshore exchange rates of RMB against the US dollar broke through the 7 integer barrier a few days ago. This barbaric act has astonished the world and has also had an impact on the global market, which international public opinion calls the worst day. Some people in the United States have been unanimously condemned by the international community for their bad practices of ignoring facts and blaming others.

Over the past few years, China has been committed to maintaining the stability of the RMB exchange rate. The devaluation of the RMB against the US dollar is not man-made, but the completely natural reaction of the market to the threat of new tariffs imposed by the US government. Former U.S. Treasury Secretary Lawrence Summers wrote in the Washington Post, criticizing the U.S. sides arbitrary decision-making and speaking fairly for China. Media, business circles and economists all over the world have said that the change of RMB exchange rate is market-driven, while the US side regards China as a currency manipulator, which is a distortion of facts and a serious policy error. Everyone who knows the basic economic law and international market knows that for a long time, the global economic downturn, interest rate cuts by multi-national central banks, and trade frictions intensified, which caused the current international financial market to become more volatile. The change of RMB exchange rate not only reflects the market law, but also reflects the flexibility of RMB exchange rate.

It is amazing that some people in the United States have done what they wanted, even if they left ironic and contradictory jokes to the outside world. In the recently concluded International Monetary Fund (IMF) negotiations on Article 4 of China, the IMF pointed out that the exchange rate of the RMB is generally in line with the fundamentals. China should not be defined as a currency manipulator even in contrast to the so-called three conditions of the U.S. Treasury Department to determine whether major trading partners have unfair exchange rate behavior.

Some people in the United States have accused them of ignoring the facts and rules without a bottom line. They have opened Pandoras magic box, which turns over into clouds and rains. Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics, said, Any fluctuation must be the fluctuation of their expectations. So downward fluctuation means manipulation. International observers generally believe that some people in the United States treat economic problems with purely political thinking, ignoring the international financial order and economic laws, and deserve the worlds vigilance.

Some Americans have repeatedly politicized economic issues, but only by intensifying the extreme pressure trick in an attempt to gain more benefits in negotiations. Such blatant violation of international rules and unilateral assessment of exchange rate policies of other countries endanger the international economic and trade order and world economic stability. The latest report of the International Monetary Fund (IMF) points out that the global economic growth rate in 2019 and 2020 will be 0.1 percentage points lower than the 3.3% and 3.6% predicted by the IMF in April, due to risk factors such as economic and trade frictions between China and the United States.

For more than a year, some people in the United States have been waving sticks all over the world, wiping their hats randomly, and now splashing dirty water on currency manipulation, which not only undermines international rules, but also undermines and undermines the credibility and competitiveness of the United States. It should be noted that any action that reverses black and white and creates trouble is playing with fire. Facts will eventually prove that some American farces will end in failure.

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