China didn’t manipulate exchange rate
Posted on Jan-30-2009· by china investor
A important economic official of USA said last week, Obama think china is manipulating exchange rate.His words make many Chinese angry and unfair,as we all know,It seems China never changed exchange rate policy since 1997.when most of country in Asia depreciated currency in 1997,China stick to the high exchange rate level to maintain the Asian economic growth.In last three years,Chinese currency has increased over 20 %,but at the same period,US dollar,pound,and lot of currency depreciated sharply.
Now,decline in exports and rising unemployment in China,if Chinese exchange rate continue to rise at this time,that means suicide,but this will result in the rising CPI of USA,and China will have to take back the capital to support the domestic economy.as we all know,USA must issue a large number of bonds,therefore this behavior will damage China and USA.
So many Chinese wonder why this official said so,if his aim is to force China use his money to support USA economy,he should respect much China.
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