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Donald Trump has something to say about China's devaluation

Wednesday, August 12, 2015 18:58

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“(China) continuously cuts their currency, they devalue their currency,” Trump said on Wednesday during a campaign stop in Birch Run, Michigan. “They’ve been doing this for years – this isn’t just starting.”

Short-term events aside, though, data shows China’s yuan has in fact been strengthening over the last 10 years, dramatically so. And while its appreciation against the dollar has abated in the last couple of years, the yuan has continued rising against the currencies of most of its trade partners, including Japan and the euro zone.

A weak currency lowers the price of a country’s exports, making them more attractive to international buyers.

“It is hard to call the yuan weak. It is less strong,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York …. http://www.reuters.com

Source: http://luismmx.blogspot.com/2015/08/donald-trump-has-something-to-say-about.html

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