Comments on: How does China Manipulate its Currency?

By: Jerry

Jerry — Thu, 03 Nov 2011 04:31:45 +0000

After reading the article, the concept of currency manipulation still does not make sense to me. If the yuan is undervalued by the government of China, there is no one forcing Americans to purchase the yuan at the prices the Chinese government deems fit. It sounds like the American government wants to force the Chinese government to raise the price of the yuan, in order to ultimately force American businesses to buy the yuan at higher prices, which in turn discourages American businesses/consumers from buying Chinese products too.

If this is true, then I think American politicians need to convince Americans to simply buy American products. There’s no need to talk about currency values.

By: Punishing China and Hurting Ourselves

Punishing China and Hurting Ourselves — Sat, 15 Oct 2011 20:36:30 +0000

[...] its currency by buying up billions of U.S. dollars on the world currency market and thereby keeping the price of the dollar high relative to the Yuan. It is desirable for China to do this because it [...]

By: Currency Manipulation — Q-and-A (ContributorNetwork) | Breaking News Today

Sun, 09 Oct 2011 20:15:52 +0000

[...] foreign countries. By way of contrast, China is a centralized communist government which has “manipulated” its yuan currency lower by buying U.S. dollars and imposing other restrictions on foreign [...]

By: Currency Manipulation — Q-and-A (ContributorNetwork) | News Bulletins

Currency Manipulation — Q-and-A (ContributorNetwork) | News Bulletins — Sun, 09 Oct 2011 18:26:15 +0000

By: Luis Alfonzo

Luis Alfonzo — Sun, 07 Aug 2011 16:27:16 +0000

It’s not that there is no demand for the dollar and that this would create a higher demand for the locla currency. When a currency control is placed and there is a limit to the amount of the local currency that can be changed into dollars you are preventing a significant increase of the amount of dollars to the local currency in the market due to currency exchange. This doesn’t mean there is no demand for the dollar just because a restriction has been placed, quiet the contrary. The restriction is placed and continued because the demand for the dollar is there. This prevents a value increase of the local currency to dollar, and if this local currency depends on exports like china, india, japan, singapore, south korea, etc you are making sure profit keeps at its highest level possible. Just ask Japan and Toyota about their struggle with controlling the yen.

By: Loose Thoughts ~ Surfing the blogs at Bride of Rove

Loose Thoughts ~ Surfing the blogs at Bride of Rove — Sat, 11 Jun 2011 13:52:41 +0000

[...] have already defaulted. It’s not anything China hasn’t been doing to us for decades by controling their currency with an iron fist so I’m not going to get all worked up over their anger. I am going to get [...]

By: nishaanth

nishaanth — Fri, 27 May 2011 10:31:55 +0000

excellent reply!!!

By: Steven Adamou

Steven Adamou — Fri, 29 Apr 2011 17:01:35 +0000

Hi, I am a first year economics student and I found this article to be quite misleading.
First and foremost, when the author says “Chinese imports may no longer be cheap enough to compete with American produced goods.” if the chinese stop manipulating the price of their yaun, suggests that they are ‘taking American jobs’ by doing this. Which is just not the case. If they were to discontinue their currency manipulation then input prices for firms in the United States would go up and we would have recession. How’s that for taking American jobs?

By: Shellcore

Shellcore — Wed, 27 Apr 2011 23:40:02 +0000

Isn’t the fact that the US Federal Reserve Bank prints money out of thin air each and every day also a form of currency manipulation?

By: Jon

Jon — Mon, 11 Apr 2011 15:04:35 +0000

Hi, great article, really informative and unbiased.
I don’t get this part though.

“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.”

Wouldn’t this push the Indian dollar up? Less Indian currency in the world market, means higher demand vs supply? Seems more like a mercantilist policy than one that has to do with currency control.