Infographic: How China Manipulates Its Currency

[Roybot]

Could you please post a link to the News article you posted above?.
Thanks.

JayAtl is banned, so allow me.

Infographic: How China Manipulates Its Currency - Derek Thompson - Business - The Atlantic

 

[Götterdämmerung]

Why is high-tech US even competing low-tech China? The US should compete with us Germany and Japan. Oh, I see, they have not much to compete in the cosumer sector. Just take a look at their cars.

 

[Hafizzz]

How does China Manipulate its Currency?

To be fair to China, almost every country in the world manipulates its currency. In an ideal free market world – there would be no government intervention in the currency markets. However, there is hardly any Central Bank in the world that doesn’t intervene, when its currency starts to appreciate or depreciate beyond a certain price band.

Almost every Central Bank has a certain price band for its currency in its mind, and as soon as the currency goes beyond that band, governments start intervening in one way or the other.

This government intervention can be direct or indirect.
Buying Dollars to Keep the Dollar Price High

China has been interested in keeping the Yuan (Chinese Currency) undervalued relative to the US Dollar, and the easiest way (if you can afford it) to keep the Dollar price high, and the Yuan low is to buy dollars from the open market.

A country like China, which runs a huge Trade Surplus can afford to buy dollars in the open market to keep the demand for dollars high, and push the dollar price upwards relative to the Yuan. This keeps the Yuan undervalued.
Indirect Measures

There can be indirect interventions like putting a cap on the amount of foreign assets that locals can invest abroad. For example – India allows its residents to invest only up to $50,000 in foreign assets every year.

 

[Hafizzz]

how do u manage to pull india in every discussion, did some indians rough u up when u were young, this thread is about china dude......

Are you having problem with your reading ability because the article I posted is about China but the author did mention that almost
every country out there manipulates their currency as well. Read carefully before you accuse others for any wrong doing.

 

[Hafizzz]

Even though there are claims of China as a currency manipulator, I would still put much more of my trust in the yuan than the dollar.

China isn't the only currency 'manipulator'
Currency manipulation? U.S. must look in mirror -- The Buzz - Oct. 6, 2011

 

[arcane]

Are you having problem with your reading ability because the article I posted is about China but the author did mention that almost
every country out there manipulates their currency as well. Read carefully before you accuse others for any wrong doing.

your article has no source, post the source of that article, and quit trolling about indians....

 

[Hafizzz]

your article has no source, post the source of that article, and quit trolling about indians....

again you failed to read properly 1!!

I did provide a source. go back to the message and read it carefully.

 

[arcane]

again you failed to read properly 1!!

I did provide a source. go back to the message and read it carefully.

yes, and that article is a very huge one, but u copied here only the part which concerns with india, and put in large fonts, this shows your dirty mentality.....

 

[Hafizzz]

yes, and that article is a very huge one, but u copied here only the part which concerns with india, and put in large fonts, this shows your dirty mentality.....

quit trolling

 

[arcane]

quit trolling

its very obvious who's trolling here, when u don't find good anti india articles, u trim good articles to make them look like anti india, good going......

 

[Hafizzz]

its very obvious who's trolling here, when u don't find good anti india articles, u trim good articles to make them look like anti india, good going......

you make all indians here look bad.

 

[arcane]

you make all indians here look bad.

and u didn't want to make all pakistanis look bad so u changed your flags to uganda, clever move.....

 

[Hafizzz]

and u didn't want to make all pakistanis look bad so u changed your flags to uganda, clever move.....

your knowledge is very limited. hafiz is a common muslim name

 

[arcane]

your knowledge is very limited. hafiz is a common muslim name

yep, but not all muslims trim good articles to make them look like anti india, only a particular section of them does that.....

 

[Hafizzz]

yep, but not all muslims trim good articles to make them look like anti india, only a particular section of them does that.....

'trim' LOL

Quoting a section from an article is a very common things people do as long as you give credit to the author.