How The US-China Trade War Turned Into A Currency War

The Trump administration has turned its sights on China’s currency as the two countries continue to trade blows in the ongoing trade war. In early August 2019, the U.S. Treasury Department designated China as a currency manipulator, shortly after the yuan fell sharply and send markets into a tailspin. Here’s what a currency war looks like, and what it means for the trade war and global markets.

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How The US-China Trade War Turned Into A Currency War

[keqing]

They forgot also US lunch a trade war against Japan in 1980's to 1994 when Japan was an rising economic power

[amanvds]

if you devalue your currency your exports become cheaper but on the other hand your imports get more expensive .... countries like china can benefit from it because they export more then they import but countries like USA who are a big importer docent benefits from devaluing their currency

[SonicSP]

All countries manipulate currencies to a point. Thats kind of the whole point of a monetary policy.

[tbseow]

When U keep printing money, U become another Zimbabwe.

[rayleeaustralia]

The moral of the story... think before you act as nobody will take it lying down

[WarriorsPhoto]

Good information. Very well done for a simple person to understand. This is good to understand. Thank you, Sara Eisen.

[gamania]

"Currency manipulator!" screams the Fed as he turns up the dial on its printing press. How ironic.

[arnouldtuyizere]

These days I keep asking myself is that people are coming of age or is that the world is at a tipping point

[jasonjean]

What? No mention that the U.S. has three criteria for identifying a currency manipulator and that China only meets one of these criteria (a trade surplus with the U.S.). No mention that the IMF and the rest of the international community claims that China is not manipulating their currency? No mention that the U.S. dollar is presently artificially inflated in value so of course other currencies would lower in value relative to it unless they manipulated their currencies in order to peg them to the dollar? (The yuan is pegged to the Euro, not the dollar). Nice reporting, almost missed all the important points of discussion.

[skywalkerhunterarchive]

get it done, quickly, please, let me see the winner so i can decide whether i should continue learning english or start learning chinese

[schmoukiz]

If the dollar is dropped by the rest of the world, Americans would have to start to actually pay for the goods they order online on Amazon or buy from Walmart. I mean pay with work hours producing actual goods, not numbers on a computer screen or services to one another, tangible goods and commodities to be exchanged, not green paper issued by the state.

[swapw]

Weaker currency is better as long as it is stable. The two don't always go together as the game is being played to push the value of currency down. The same goes with your cost of living which dramatically rises from a weakening currency.

[tuannguyenable]

Australia & New Zealand just cut their interest rates lower to make their money cheaper. Does it also consider currency manipulator?

[drkimoni]

WAIT A MINUTE ! WE AT WAR AND WE CONSUMING THE ENEMIES GOODS ! INSANE !

[AngelRodriguez-brvh]

I think I've learnt more about economics watching cnbc than in my college lol

[simpleserpent]

tf why bgm is so chill like TRADE WAR YAA LET`S CHILL OUT GUYS TO-DO-DO DO-DO DO-DOOOO

[hikurukutai]

Bring back the gold standard to stop america from just printing money

[PuffAdder]

You know that if the US had a weaker currency, then that means the the people at home can't purchase as much. That's bad!

[Crashed]

Can you imagine on vacation abroad and trying to tip the staff with Chinese money rather than US dollars?
They would look at you like you were from Mars.
Might as well hand them Rwandan francs. LOL

[jaym]

Currency printers vs manipulators. Which is superior?