U.S. Treasury officially designates China a key currency manipulator in the broader context of Sino-American trade dispute resolution.

Becky Berkman

2019-09-15 14:35:00 Sun ET

U.S. Treasury officially designates China a key currency manipulator in the broader context of Sino-American trade dispute resolution. The U.S. Treasury classification of China as a new currency manipulator suggests that this classification represents another escalation of the current Sino-U.S. trade conflict. The next currency battle may turn out to be relentless in the current game of competitive depreciation. This escalation spooks global financial markets and therefore wipes 3.5% from all major U.S. stock market indices such as S&P 500, Dow Jones, Nasdaq, and MSCI USA. French, German, and other European stock market indices decline by 2.5%-3%.

China allows its renminbi currency to tumble to the psychologically vital 7-yuan per U.S. dollar (or the lowest level in 11 years). This depreciation may give China an unfair competitive advantage against America in the current game of chicken in tech, trade, and currency. However, the recent renminbi currency misalignment may or may not help increase Chinese exports due to global interest rate surprises and competitive prices outside East Asia. Federal Reserve interest rate cuts may inadvertently give American politicians the vague impression that monetary policy can help repair the damage of trade policy mistakes. When push comes to shove, the law of inadvertent consequences counsel caution.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

British Prime Minister Theresa May faces her landslide defeat in the parliamentary vote 432-to-202 against her Brexit deal.

Charlene Vos

2019-01-27 12:39:00 Sunday ET

British Prime Minister Theresa May faces her landslide defeat in the parliamentary vote 432-to-202 against her Brexit deal.

British Prime Minister Theresa May faces her landslide defeat in the parliamentary vote 432-to-202 against her Brexit deal. British Parliament rejects the M

+See More

What are the mainstream technological advances in the global auto industry?

Chanel Holden

2024-04-30 09:30:00 Tuesday ET

What are the mainstream technological advances in the global auto industry?

With clean and green energy resources and electric vehicles, the global auto industry now navigates at a newer and faster pace. Both BYD and Tesla have

+See More

Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut press conference.

Chanel Holden

2018-03-21 06:32:00 Wednesday ET

Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut press conference.

Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut post-FOMC press conference. The Federal Reserve raises

+See More

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Salesforce (U.S. stock symbol: $CRM).

Amy Hamilton

2025-10-09 11:30:00 Thursday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Salesforce (U.S. stock symbol: $CRM).

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund

+See More

White House economic advisor Gary Cohn resigns due to his opposition to President Trump's protectionist tariff stance.

Peter Prince

2018-03-02 12:34:00 Friday ET

White House economic advisor Gary Cohn resigns due to his opposition to President Trump's protectionist tariff stance.

White House top economic advisor Gary Cohn resigns due to his opposition to President Trump's recent protectionist decision on steel and aluminum tariff

+See More

What are the mainstream legal origins of President Trump's new tariff policies?

Amy Hamilton

2025-06-13 08:23:00 Friday ET

What are the mainstream legal origins of President Trump's new tariff policies?

What are the mainstream legal origins of President Trump’s new tariff policies? We delve into the mainstream legal origins of President Trump&rsquo

+See More