Donald Trump to Federal Reserve: China is indulging in ‘currency manipulation’, are you listening?

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August 5, 2019 7:04 PM

Even as the trade war deepens, the US President Donald Trump on Monday accused China of manipulating its currency as yuan slipped to the lowest level in over a decade.

I know that I stand with everyone in this Country to condemn today's hateful act, says Trump (File photo)The tweet comes days after the US came up with 10 per cent duty on an additional $300 billion in the Chinese imports. (File photo)

Even as the trade war deepens, the US President Donald Trump on Monday accused China of manipulating its currency as yuan slipped to the lowest level in over a decade. Trump also took aim at the Federal Reserve regarding China’s currency drop. “China dropped the price of their currency to an almost a historic low,” Trump said in a tweet. “It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!” The Chinese yuan traded above 7 per US dollar, making Chinese products cheaper.

The tweet comes days after the US came up with 10 per cent duty on an additional $300 billion in the Chinese imports. Donald Trump a few days back had announced on Twitter that he would impose 10 per cent tariffs additional tariffs on the Chinese goods, effective 1 September. “Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country…We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”, he had said.

Also read: $5 trillion economy dream doable, but need external capital flow at this rate; this SBI official says

Both the US and China are amid a fierce trade war, which has even impacted the global economy significantly. China, in the past, has weakened its currency to make its exports attractive. However, it has not been without risks for China. A mid-2015 devaluation triggered capital outflows and destabilised the global markets.

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