Yuan and dollar bills

What’s wrong with the renminbi exchange rate?

  • The Trump administration is criticizing China for exchange-rate manipulation
  • The yuan, however, has not depreciated significantly against the dollar
  • The West also engages in monetary policy that affects exchange rates
  • Washington seems unsure whether it wants a strong or weak yuan

The trade dispute between Washington and Beijing is not over, but most observers believe that a satisfactory compromise is not impossible. This would be good news for the entire world – so good that fears about a global slowdown have receded and optimism has been prevailing until very recently. Consistent with Mr. Trump’s pragmatic, comprehensive approach to trade matters, the administration has also devoted considerable attention to exchange-rate policies, a strategy that the Chinese are supposed to have used and could perhaps use in the future to mitigate the consequences of lower (traditional) trade barriers.

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Professor Enrico Colombatto
The debate on the strength of the renminbi is really a debate between the two souls of the American administration
read more about it in the report
What's inside
  • The Trump administration is criticizing China for exchange-rate manipulation
  • The yuan, however, has not depreciated significantly against the dollar
  • The West also engages in monetary policy that affects exchange rates
  • Washington seems unsure whether it wants a strong or weak yuan
Who will benefit?
  • Report is targeted to the decision makers in cross country manufacturing – suppliers, manufacturers, logistics.
  • Also considered useful for the administrative university facilities, to better understand the possibe effects of current decisions.
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