Joint effort - currency intervention
Japan 2011: "The world's richest nations have carried out coordinated action in the currency markets to try to stabilise the Japanese yen. It is the first time since 2000 that G7 countries have jointly intervened in the currency markets... Earlier this week, the yen hit 76.25, its strongest since World War II, adding to fears over Japan's recovery. NOTE: Japan is the world's third-biggest economy and relies heavily on exports. A rise in the yen makes Japanese products less desirable abroad."
One country
2010: "The House of Representatives approved a bill to treat the yuan’s exchange rate as a subsidy. The legislation was backed by both Democrats and Republicans and is a response to what American lawmakers believe is systematic manipulation to keep the Chinese currency undervalued. China said the bill could harm ties between the two countries. It is unlikely that the bill will be passed by the Senate and signed into law by Barack Obama." Economist.com
Under the 1988 Omnibus Trade and Competitiveness Act, the Treasury department is required to report annually on the exchange rate policies of countries with large trade surpluses with the United States to determine if they "manipulate" their currencies against the dollar to "prevent effective balance of payments adjustments or to achieve an unfair competitive advantage in international trade."
read more from CFR here
Comments (0)
You don't have permission to comment on this page.