Goldman will not rule out US naming China a currency manipulator
The yuan has slid more than 10% against the dollar in the last six months, raising speculation that China is deliberately weakening its currency as tension with the US escalate
Goldman Sachs is not ruling out that the US might label China a currency manipulator in a report due next week. Though China doesn’t meet the three official criteria, the US's treasury department could still accuse the Asian nation if it found that China was manipulating the yuan for trade purposes, Goldman notes. While not the bank’s base case, given that currency matters have played a “central role” in the US-China trade standoff, a formal declaration isn’t unfathomable. “Naming China a currency manipulator does not seem like the logical next step at this point,” currency strategist Michael Cahill wrote in an October 10 note. “That said, the administration’s continued focus in this area means we cannot rule it out.” The yuan has slid more than 10% against the dollar in the last six months, raising speculation that China is deliberately weakening its currency as tensions with the US escalate. The drop has drawn the ire of US President Donald Trump, who accused China and the Europea...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.