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What’s wrong with the renminbi exchange rate?
Prospects for a U.S.-China trade deal now seem to be hanging by a thread. Even before the most recent disagreement, however, the Trump administration had already begun drawing attention to a new question: whether China had been engaging in protectionism by manipulating its currency. But the administration’s argument reveals confused ideas about what exactly it wants: a dominant role for the dollar as an international reserve currency or an appreciated renminbi to please American producers.