The renminbi is finally “breaking seven”, that is, one dollar can be exchanged for 7 yuan, or even more than 7 yuan. Seeing the 11-year low, Hong Kong stocks immediately fell sharply. Soon, the US Treasury officially announced that China will be listed as a currency exchange rate manipulator
The last time the US dollar announced that China was the currency exchange rate manipulator was the 1994 Clinton era. In that year, the renminbi could be divided into two types, one is the official price of foreign exchange vouchers, and the other is a black market renminbi. The black market people put the exchange rate at a very low rate. The renminbi is exchanged for foreign exchange vouchers or foreign currency.
Afterwards, the Chinese government suddenly lowered the official exchange rate of the renminbi in a very short period of time and adjusted it to the level similar to the renminbi “exchange rate” of the black market
In 1995, it announced the cancellation of foreign exchange vouchers. Since then, the renminbi black market has not existed. People have a legitimate channel to exchange RMB for foreign currency. At that time, China was still a poor country, and China was not a major exporting country or a world factory. Therefore, after Clinton announced that China was a currency exchange currency, there was no actual action against China. It should be said that the US Treasury Department decided to announce China’s manipulation of the RMB exchange rate based on the rapid depreciation of the RMB at that time.
The manipulation of the currency at the request of the president is purely a political decision
This time, the US Treasury Department in the announcement of China’s manipulation of the RMB exchange rate deliberately emphasized that the Ministry of Finance made this decision at the request of the President. In other words, this is not the US Treasury’s independent investigation based on changes in the Chinese RMB exchange rate. The decision to make this is purely a decision of the president alone. In other words, this is a political decision. Trump added the currency war to the trade war and the currency war.