One of the biggest currency wars in the FX world is the one opposing China and the United States. The US has accused China of contributing to their bilateral trade imbalance by maintaining the Renminbi at an artificially low level against the USD. Except, despite China’s efforts to appreciate its currency since 2005, Chinese exports to the US are still nearly four times greater than US exports to China. China’s current account surplus has allowed it to pile up huge foreign currency reserves. So what do you make of China’s ‘Yuan Diplomacy’? Look at other traders’ views, join the #FXdebates.
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