|As we know every year certain very angry US politicians get together to insist that the President must declare China to be a “currency manipulator”. The thought is that the country artificially keeps its currency low in value against the dollar, thereby boosting exports from China to the US.
This is presumed to be to the detriment of US industry (although those politicians do overlook how it benefits US consumers). There may even be some truth to the complaints. But what interests is, well, imagine that China became entirely free market about the value of the yuan? Just allowed anyone who wanted to to buy and or sell how ever much they wanted, to be allowed to ship money in or out of China as they wished? The assumption is that the yuan would climb in value but I’m not so sure...............................................Full Article: Source