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dc.contributor.authorFeng, Hui
dc.description.abstractWhen US President Donald Trump announced via Twitter on Friday that he was slapping tariffs on an extra US$300 billion of China’s exports, it was widely expected that China’s currency would slide against the US dollar. What wasn’t expected was that on Monday it would break the seven Chinese renminbi (RMB) to the dollar barrier, a line held by China since 2008. The RMB/USD exchange rate is tightly managed by the People’s Bank of China. The rate is permitted to move only 2% away from a midpoint fixed by the bank each day. Although in its official statement the bank attributed the slide mainly to changes in demand and supply, the slide would not have happened had the bank not allowed it. In the past it spent as much as US$107 billion in a single month defending the renminbi. It is more reasonable to believe that the devaluation was a deliberate decision taken to offset the effect of the punitive tariffs. By making China’s exports cheaper in US dollars it will neutralise the effect of Trump’s decision to impose tariffs that would make them more expensive. But it will have far-reaching implications, so far-reaching as to suggest that Beijing has run out of alternatives.
dc.publisherThe Conversation
dc.relation.ispartofjournalThe Conversation
dc.subject.fieldofresearchGovernment and Politics of Asia and the Pacific
dc.titleThe China-Trump trade war has spread to Australia. We’re now at risk of global currency war
dc.typeJournal article
dc.type.descriptionC2 - Articles (Other)
dcterms.bibliographicCitationFeng, H, The China-Trump trade war has spread to Australia. We’re now at risk of global currency war, 2019
gro.hasfulltextNo Full Text
gro.griffith.authorFeng, Hui

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