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Showing posts with label Currency war. Show all posts
Showing posts with label Currency war. Show all posts

Monday 19 August 2019

'We lied, we cheated, we stole', 'the glory of American experiment' by US Secretary of State/Ex-CIA director Mike Pompeo

https://youtu.be/DPt-zXn05ac

US Secretary of State Mike Pompeo: "I was the CIA director. We lied, we cheated, we stole. We had entire training courses. It reminds you of the glory of the American experiment."

Pompeo said this at an event at Texas A&M University on April 15, 2019. Here is the official State Department transcript:https://www.state.gov/secretary/remar....

https://thegrayzone.com Support our original journalism at Patreon: https://patreon.com/grayzone Twitter: https://twitter.com/grayzoneproject Facebook: https://facebook.com/thegrayzone

‘Glory of American experiment’: What did Pompeo mean by that?


https://youtu.be/OrthGnb_mlc

Mike Pompeo is loved by the Koch brothers, big oil, Islamophobes, people against marriage equality, and of course, Donald J. Trump. Narrated by Judy Gold. » Subscribe to NowThis: http://go.nowth.is/News_Subscribe 

With business ties to foreign governments, connections to the defense and oil industries, nonchalance towards torture, and hatreds of entire cultures, it’s no surprise Mike Pompeo’s run as Trump's CIA Director was short lived – but his time in the White House continues on as U.S. Secretary of State and head of all U.S. diplomatic relations. 

Pompeo: 'I was the CIA director. We lied, we cheated, we stole'

https://youtu.be/qfrhATD4nM0

 'I was the CIA director. We lied, we cheated, we stole. It’s – it was like – we had entire training courses. It reminds you of the glory of the American experiment' - Pompeo

Mike Pompeo says, “Lying, cheating and stealing reminds you of the glory of the American experiment”


https://youtu.be/Lc8oDNaDlek

Pictured above: US Secretary of State Mike Pompeo, telling it like it is: lying, cheating and stealing are the glory of the American experiment. It's what the capitalist West does best. He was adored by the audience like a success guru. 

Source article with all the images and hyperlinks: https://chinarising.puntopress.com/20... 

Much more at www.chinarising.puntopress.com, http://chinarising.puntopress.com/201... and http://apps.monk.ee/tyrion


Mike Pompeo says, “Lying, cheating and stealing reminds you of the ...



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Illustration: Liu Rui/GT US President-elect Donald Trump appointed Peter Navarro, a strident critic of China, as head of the new Nat...


https://youtu.be/gUR250IZyj0 China Has Not Manipulated the Yuan, PIIE's Bergsten Says https://youtu.be/WFhtHy3hZcg https://...
A profile photo of Peter Navarro Photo: IC ○ Navarro used the idea of the seven sins to criticize China, which showed his narrow and d...
A rioter waves a US national flag in Tsim Sha Tsui district in Hong Kong on August 11. Photo: AFP https://youtu.be/m5xXUsU9oEI How ...
 

Wednesday 14 August 2019

Singapore growth forecast down to 1%

Unknown future: As Singapore further cut its growth forecast, New Zealand, India and Thailand also cut their interest rates signalling concerns on growth outlook. — AFP

SINGAPORE: Singapore slashed its full-year economic growth forecast as global conditions were seen worsening and data confirmed the slowest growth rate in a decade amid mounting fears of recession in the city-state.

The government cut its forecast range for gross domestic product in Singapore – often seen as a bellwether for global growth because international trade dwarfs its domestic economy – to zero to 1% from its previous 1.5%-2.5% projection.

Singapore’s downgrade adds to concerns globally about the effect of increasing protectionism on exports and production.

The deterioration in the global outlook has pushed central banks to cut interest rates and consider unconventional stimulus to shield their economies.

“GDP growth in many of Singapore’s key final demand markets in the second half of 2019 is expected to slow from, or remain similar to, that recorded in the first half, ” the trade ministry said in a statement to the media yesterday.

The ministry flagged a host of growing economic risks including Hong Kong’s political situation, the Japan-Korea trade dispute, the Sino-US tariff war, slowing growth in China and Brexit.

Final second quarter GDP data yesterday showed a 3.3% on-quarter contraction on a seasonally-adjusted annualised basis. That was slightly smaller than the 3.4% decline seen in the government’s advance estimate but deeper than a 2.9% fall predicted in a Reuters poll and a sharp contrast to the robust 3.8% first quarter expansion, which was driven by brisk construction activity.

Yesterday’s data also confirmed annual GDP expanded 0.1% in April-June from a year earlier, its slowest rate in a decade, and lower than poll expectations of 0.2% and the first quarter’s 1.1%.

Singapore’s benchmark stock index fell 1.2% to a two-month low in early trade, underperforming other bourses in the region.

Singapore has been hit hard by the Sino-US trade war, which has disrupted world supply chains in a blow to business investment and corporate profits.

Also yesterday, Singapore cut its full-year forecast for non-oil domestic exports to a 9% contraction from an 8% fall previously.

That comes after a 26.9% drop in electronics exports in the second quarter year-on-year.

“With trade tensions between the US-China unlikely to abate anytime soon, we expect exports and trade-related services to push the economy into technical recession in Q3, ” said Sian Fenner, lead Asia economist at Oxford Economics.

New Zealand, India and Thailand all cut interest rates last week, signalling major concerns about the outlook for economic growth. Last month, the US Federal Reserve cut interest rates for the first time since 2008.

Singapore Prime Minister Lee Hsien Loong said in an annual speech last week that the government stood ready to stimulate the economy.

“It feels like the storm is coming if you look at the whole macro economic fundamentals softening, ” said Selena Ling, head of treasury and strategy at OCBC Bank.

“All the downside risks are piling up on one side, ” Ling added, pointing to the myriad of global risks flagged in the trade ministry statement. — Reuters

Read more:

FBM KLCI dives below 1,600 level to near four-year low
FBM KLCI dives below 1,600 level to near four-year low
by Wong Ee Lin



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Peter Navarro, a hawk that 'lacks intellect and common sense' is Trump's trade adviser or political agitator?

 

A new cold war in trade wars also is a tech war and currency war now !


American anti-China Hawks ignited the trade war, are Trump's advisors


Peter Navarro, a hawk that 'lacks intellect and common sense' is Trump's trade adviser or political agitator?

A profile photo of Peter Navarro Photo: IC
○ Navarro used the idea of the seven sins to criticize China, which showed his narrow and distorted mind

○ Navarro has been called the US President Donald Trump's "spirit animal" as Donald Trump Jr. called him "a fierce warrior" for his father's America First trade agenda

○ Politicians like Navarro have ruined the efforts made in the China-US trade talks and US society will pay for this, analysts said

White House trade adviser Peter Navarro on Sunday said that China must end the "seven deadly sins," a remark that was criticized by Chinese experts as "absurd and full of hostility" and that Navarro's dominance of economic issues in the White House is a source of sadness in current China-US trade ties.

Navarro, 69, is a White House trade adviser and ardent supporter of the trade war. Several days earlier, Trump escalated his tariff war with China and Navarro was the only person at the announcement who supported it.

Navarro used the Christian concept of the seven deadly sins to criticize China, which showed his narrow and distorted mind. His willful moves to stir up hatred between countries are the real sin, analysts said.

He has written three books discrediting China and produced documentaries portraying Beijing as a threat. He ingratiates himself with those in the White House in order to get promoted. He has a "big mouth" and was told to shut up after saying the Canadian Prime Minister deserves "a special place in hell." He has written a number of books, but has always been an unrecognized "non-mainstream economist."

Navarro's distinguishing feature among White House staff and senior officials is likely not that he is more of a "hawk" than others, but that he lacks intellect and common sense. He is highly compatible with his leader in his use of irrational methods, a Chinese scholar told the Global Times.

A US cargo ship (back) is seen at the Yangshan Deep-Water Port, an automated cargo wharf, in Shanghai on April 9, 2018. Photo: VCG

Out of favor

"Imagine the United States simultaneously engaged in trade wars with China, India, Pakistan, Thailand, the Philippines, Singapore, Ukraine, Mexico, Saudi Arabia, Chile, Brazil and Turkey," said a report by the Axios news website in August 2018.

Axios has obtained a copy of a draft executive order Navarro put together in the fall of 2017 that would have imposed tariffs on every product imported from every country doing significant business with North Korea, according to Axios.

"Its death is thanks to — well, just about everyone. Officials at Commerce, State, Treasury, and the Office of the United States Trade Representative all considered the proposal totally unworkable," Axios reported.

As long as he's in the administration, there will be a persistent, noisy, enthusiastic voice for these kinds of tariffs, according to Axios.

In fact, Navarro was out of favor in the White House when he proposed the tariffs. The American website Vox Media recalled that in the fall of 2017, John Kelly, then White House chief of staff, began controlling advisers' access to Trump by having Gary Cohen, director of the White House national economic council, restrain Navarro.

What did Navarro do? In order to get more direct contact with Trump, he often lurked in the West Wing of the White House at night and on weekends.

Navarro was named director of the newly established White House national trade council after President Trump's election in 2016, and he remained director after it was transformed into the White House office of trade and manufacturing policy in April 2017. However, Navarro's first year in the White House was difficult because Trump's economic team was run by "globalists."

An American with ties to Trump's business team told the Global Times that Navarro did not have his own team in the first few months in the White House and had to attend meetings alone. Not only was he excluded from many high-level strategy meetings, he was also required to copy all work emails to Cohen.

However, two personnel changes in early 2018 gave Navarro an opportunity. In February, Rob Porter, a top political aide and White House staff secretary who was a key supporter of free trade, resigned over domestic violence allegations. In March 2018, Cohen resigned after Trump insisted on tariffs on steel and aluminum products.

Navarro was eager for the vacant position and went all out for it in private, but publicly pulled his punches and said he wasn't competing for it, Politico reported.

Navarro eventually failed, but rose in stature. According to one American trade expert, Trump wanted protectionism, but almost everyone in the room disagreed.

Lü Xiang, an American issues expert at the Chinese Academy of Social Science, told the Global Times that Navarro's role in the process of economic policymaking in White House was elevated after Cohen's resignation. It is said that his annual salary was raised from second class to first class from March 2018, lower only than that of the President and vice president, which shows the appreciation with which he has been received.

In May 2018, the China-US high-level trade consultation was held in Washington.

A reporter at Bloomberg said the White House had not scheduled Navarro for the talks because of his inappropriate and unprofessional behavior. But Navarro criticized Steven Mnuchin, secretary of the US Treasury, in the media for giving too much ground in the talks. A few days later, Trump repudiated the negotiations and imposed taxes on $50 billion worth of Chinese products.

Given Navarro's influence, Time magazine published an article in August 2018 saying that he does not have as much power as Mnuchin or the same responsibilities as trade representative Robert Lighthizer, but that his role should not be underestimated. If Stephen Miller, a controversial White House senior adviser, is the infamous player behind immigration, Navarro is the core leader of a series of much-criticized economic policies.

Unpopular loser

In published photos, Navarro looks somber, with a high forehead and gray hair.

He has a lot more to show for himself, with his Harvard degree, his doctorate and so on, but it is his paranoia that is his most memorable feature. In fact, Navarro originally wanted to be a politician, not an adviser, but he had a problem: people don't like him.

Navarro was originally registered as a Republican, but ran unsuccessfully for office four times as a Democrat in the 1990s. He was once close to Nancy Pelosi, speaker of the United States House of Representatives, and former secretary of state Hillary Clinton.

When he ran for congress in 1996, then-president Bill Clinton opposed him. His defeat was devastating: his wife divorced him and he fell deeply into debt.

Until 2008, he was a supporter of Democratic politicians, especially Hillary Clinton. But in the election of 2016, Navarro became an adviser to Trump. Trump is said to have suffered without the help of economists, and his son-in-law Jared Kushner asked Navarro to join after searching Navarro's book on Amazon.

Born into a working-class family, Navarro grew up with his mother and was a hard-working graduate of two prestigious universities, Tufts and Harvard. However, his experience can be described as changeable and ill-fated.

Lü argues that his life experience has led to Navarro's perennial unhappiness, and that he will spare no effort to translate his absurd claims into concrete policies once he is promoted by a leader who approves of him.

Although he is valued by his leader, Navarro was not liked by his colleagues. According to some American media, Navarro has a tough personality, and can be unaccommodating and unpopular. Navarro is as rude as ever when Trump cannot hear, scolding and belittling those who disagree with him.

'Spirit animal'

Navarro was called "President Trump's spirit animal" by Axios news website, as many scholars and experts in economy poured scorn upon his ideas on trade.

"Peter is a fierce warrior for my father's America First trade agenda, and while it may upset some members of the failed bipartisan establishment of the Washington Swamp, he understands that we can't allow China to continue taking advantage of American workers and hollowing out our industrial base," Donald Trump Jr. said in a statement to The Washington Post. "His only agenda is my father's agenda and the White House is lucky to have him."

Some media pointed out that Navarro is the president's intimate friend only when they talk about tariffs.

Experts said that Navarro was away from the spotlight for a while but then came back with a madder attitude.

Navarro appeared on Fox news on June 13, criticizing China in many fields, including intellectual protection and currency.

Many of Navarro's propositions on trade and economy are condemned as unreasonable. Many mainstream economists think he has created a new school of economics dubbed the "stupid school." His theories usually go against the principles of economics and he has made basic mistakes. In his articles, he has confused tariffs with added-value tax, Lü said.

"While purportedly an economist by training, Navarro's economics is misguided, inaccurate and politicized," Stephen Roach, a faculty member at Yale University, and former chairman of Morgan Stanley Asia, wrote in an editorial for the Global Times in July 2018.

It is normal that China and the US have differences, as they have their own interests. Instead of offering constructive advice to deal with these differences, Navarro has acted more like a political agitator. China and the US have gone through 12 rounds of trade talks and are trying to find ways to reach a consensus. The actions of some politicians, including Navarro, remind us that certain politicians' tricks have ruined the good momentum of the trade talks again and again, Chinese experts noted that the US society will eventually pay for these politicians' wrong deeds.

By Liang Yan, Qing Mu and Fan Lingzhi, Wang Huicong contributed to the reporting Source link 

Headless Hawk


Peter Navarro Photo: IC

Peter Navarro: trade adviser or political agitator?  


White House trade adviser Peter Navarro on Sunday accused China of committing the "seven deadly sins." He said China must "stop stealing our intellectual property, stop forcing technology transfers, stop hacking our computers, stop dumping into our markets and putting our companies out of business, stop state-owned enterprises from heavy subsidies, stop the fentanyl, stop the currency manipulation" before the trade war comes to an end.

The "seven deadly sins" refer to the seven original vices in Catholic teachings. Such a metaphor reflects Navarro's narrow-mindedness and psychological distortion. He wantonly hyped hatred between major powers, which is a real sin.

Navarro's seven accusations against China are all clichés. The accusations are long-term China-US disputes and different definitions of the disputes. But of all remarks made by US officials on such differences, Navarro's summary was the most vicious. It was not only ridiculous, but also full of hostility. His words have exposed the fact that his virtues can't compare with his position. It is the woe of China-US economic and trade relations that such a person is hijacking the White House's economic discourse power.

US media reported that Navarro is a key figure who has helped bring about the US decision to impose additional tariffs on Chinese products. He is a major spoiler contributing to the US breach of promises.

China has led its 1.4 billion people to prosperity and development. The country has not been involved in any war in more than 10 years, and has played a positive role in the UN's climate action. As a trading power, China has made every deal with the US by mutual consent.

It is normal for China and the US to have different standpoints toward their disputes. Trade is mutually beneficial and China cannot force the US to have hundreds of billions of trade with it. This is common sense. By no means can Chinese people understand why the US could define China-US trade disputes in so many weird ways. The US side stubbornly insists on its values about interests, which are not suitable in current globalized world.

The two countries can improve trade balance by adjusting many practices. The Chinese side is willing to take into consideration some of the US' concerns.

But wielding a tariff stick is unacceptable to China. Navarro said China-US trade won't end unless China satisfies all the conditions. He speaks as if it's only China's one-side wish to end the trade war. Isn't it boring to still threaten China so shallowly after one and a half years of trade war?

The fact is if the US side has no sincerity to reach a fair deal, China is prepared to fight the trade war to the end. China is being forced to do so, but it can do it well under pressure until the other side is discouraged.

It seems Navarro didn't offer the president a technical solution to solving China-US differences. He behaves more like a political agitator. The two sides have gone through 12 rounds of trade talks through which negotiating teams work hard to find common ground.

But Navarro reminds us that some people's political calculations keep impacting on the US negotiating position. American society will eventually pay for these people's politics.

Source link 


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Saturday 10 August 2019

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Poised for correction: A file picture showing a woman walking by an electronic stock board of a securities firm in Tokyo. After 10 years of continued rise in asset prices, markets are poised for correction. — AP

Tariffs are here to stay and likely to disrupt the 10-year economic cycle

IF investors ever needed a reminder that not all is right with the equities market, the shock waves the world capital markets, including Bursa Malaysia, had to endure earlier this week are proof enough.

Most stock markets are at the tailend of a 10-year bull run, although the same cannot be said for Bursa Malaysia which has generally has been more bearish than others in the last five years. Going by the current trends, Bursa Malaysia is likely to finish the year lower, which if it happens will be the fourth time in the last five years.

But the leading platform in the world which sets the pace for global flow of capital – the Wall Street – has been hitting new highs although it corrects from time to time largely due to the tweets from President Donald Trump.

Wall Street’s run started in May 2009 and seems to have the strength to carry on for a few more legs, defying conventional logic that economic boom-bust cycles corrects after 10 years. Other stock markets have had good and bad times since 2009 but the US has been consistently on the rise.

The benchmark Dow Jones Industrial Average, the Nasdaq and S&P 500, which charts the broader market, have all hit news highs. Bursa Malaysia on the other hand has languished between the 1, 600 and 1, 700 levels, with only one year of positive returns since 2014.

There are several reasons for Bursa Malaysia’s poor performance compared with other markets. For instance, the United States slashed tax rates, which spurred earnings of companies and has the best technology companies listed there. It’s not the same elsewhere in the world.

Nevertheless, after 10 years of continued rise in asset prices due to the combination of a low interest rate environment and advancement in technology, the markets are poised for correction. Until earlier this week, nobody had an inkling of an idea where and how the correction will take place.

However, after President’s Trump latest statement that the US would impose 10% tariff on an additional US$300bil worth of exports from China, it clearly underlines that the trade war is here to stay.

If anybody had a view that the trade war would end if President Trump does not retain his position in the US elections next year, they are wrong. Even some Democrats are leaning towards imposing tariff as measure to help the US keep its competitive edge in the world economy.

Reverse globalisation is no longer a bad word in world trade.

A 25% tariff has already been imposed on US$250bil worth of China’s exports to the United States since March this year.

It is bringing in billions to the US coffers with some going towards helping the farmers overcome the woes of the trade war. The person who takes over from Trump is not likely to dismantle the structure.

Any other president will want to get more from China, which is led by the influential President Xi Jinping, who is seen as the most powerful man that rules the second biggest economy in the world after the late chairman Mao Zedong.

China has retaliated by imposing tariffs on US$110bil worth of imports from the US so far including the produce from farms. It has also allowed the yuan to weaken, sparking concerns that the trade war is evolving into a currency war.Latest data from China shows that the exports are still growing and imports dropping in July even though there is a trade war, suggesting that President Xi will not yield to pressure from the US easily.

A new cold war in the form of the trade war has emerged. As a result, it has caused upheavals in the capital markets that should worry investors.

There have been significant shifts in asset prices from bonds to equities and commodities such as oil. Among all asset classes, dramatic movement in bond prices of government debt papers is the first to feel the impact from the trade war.

This is on the back of increasing certainty that the Federal Reserve and other major central banks will reduce interest rates more aggressively to stimulate the sagging economy. It has caused for money to seek safe haven such as US government debt papers.

For instance the yields on the 10-year US debt paper is 1.69% now. It was 1.9% a week ago and 2.06% a month ago. The yields moves inversely with the price of the bonds.

The yields on the five- and two-year government debt papers have also moved by up 18 points in the last one week. Such movements on billions of dollars will have an impact in the months to come.

The trade war has caused a major disruption in the global supply chain, evidence of the economy slowing globally.

If anybody wants any evidence of the disruption in global supply chain, they only need to go to the KLIA cargo complex and see for themselves the number of idle lorries that do not have enough cargo to move about.

In Malaysia’s case, apart from a slowdown in movement of goods around the world, the uncertainties in Hong Kong have exacerbated the situation.

The combined effects of the trade war, China’s economic uncertainties and Hong Kong’s future as Asia’s financial hub will only be felt in the fourth quarter of this year.

Until then, asset prices will continue to adjust to the new norm.

The views expressed here are solely that of the writer. Source link 

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Chinese telecommunications giant Huawei released its much-anticipated operating system HarmonyOS on Friday amid the US ban still that is imposed on the company and escalating China-US trade tensions. A Huawei executive said the groundbreaking move, considered a Plan B that the company has long prepared, could be used at any time if the company is no longer able to access Google's Android.

IMF reiterates China's exchange rate broadly in line with fundamentals

China's real effective exchange rate (REER) in 2018 is estimated to be at the same level as warranted by fundamentals and desirable policies, the International Monetary Fund (IMF) reiterated on Friday in a newly released report.

US dollar and Chinese yuan notes are seen in this picture illustration from June 2017. Photo: Reuters 
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Peter Navarro, a hawk that 'lacks intellect and common sense'

Politicians like Navarro have ruined the efforts made in the China-US trade talks and US society will pay for this, analysts said

 

Singapore plays unique role in connecting Chinese investments, technologies with Southeast Asian markets

 

At the waterfront of the Singapore River, an exhibition of porcelain bowls and gold artifacts dating back to China's Tang Dynasty (618-907 AD) offers a glimpse to how this region was importantly situated on an ancient trade route.


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Wednesday 28 November 2012

U.S. Treasury Sticks It To The China Haters

Treasury says it again, China  not manipulating its currency.

This is getting better and better.

On the market side, the China haters are looking more and more ridiculous. Not that I’m a China bull. I’m not smart enough to say that. And I have money in China. But I am smart enough and am surrounded by even smarter people who have led me to believe there is no hard landing.  So on the market side, the China naysayers are wrong.

On the political side, the China haters who think the country is stealing all our Nike shoe and Optimus Prime assemblying jobs thanks to their currency manipulation are also wrong. For the second time this year, the U.S. Treasury Department said in its report to Congress on international economic and exchange rate policies that, wait for it…China is not a currency manipulator.  The two or three guys advising Mitt Romney on China were wronger than Tim Tebow starting as QB for the Jets.

“The Treasury Department once again made the right call on China’s currency policy in its report to Congress. Labeling China a currency ‘manipulator’ would do little to help us reach the goal of a fully convertible currency and market-driven exchange rate for China,” said John Frisbie, president of the U.S. China Business Council, a lobby of multinationals working in China.

“Adding the very public ‘manipulator’ tag might simply produce pressure within China to slow down progress on this (forex) issue,” he said in a statement Tuesday.

China’s exchange rate has strengthened over 30 percent against the dollar over the past several years. The upshot is that the exchange rate has little to do with the U.S. trade balance or employment. Even as the renmimbi weakened, the U.S. trade deficit with China worsened.

Of course, not being a currency manipulator doesn’t mean that the renmimbi (RMB) is properly valued.

From the report:

The renminbi has appreciated by 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010. China’s trade and current account surpluses both have fallen to 2.6 percent of GDP from peaks of 8.8 and 10.1 percent of GDP, respectively.  The Chinese authorities have substantially reduced the level of official intervention in exchange markets since the third quarter of 2011, and China has taken a series of steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange rate regime.  In light of these developments, Treasury has concluded that the standards identified in Section 3004 of the Act during the period covered in this Report have not been met with respect to China. Nonetheless, the available evidence suggests the RMB remains significantly undervalued, and further appreciation of the RMB against the dollar and other major currencies is warranted.” China’s real effective exchange rate (REER) – a measure of its overall cost-competitiveness relative to its trading partners – has appreciated since China initiated currency reform in mid-2005, after declining between 2001 and 2005. From July 2005 to October 2012, China’s real effective exchange rate appreciated by 27 percent. The REER appreciated particularly rapidly in the last several months of 2011, resulting in total REER appreciation of 6.2 percent over the course of 2011. Over the ten months of 2012, China’s REER has been unchanged.

The International Monetary Fund concluded that the RMB was moderately undervalued against a broad basket of currencies, and said that the RMB was undervalued by between 5 and 10 percent as of July 2012.

Reserve accumulation, an indicator of the degree of Chinese intervention in the currency market, has slowed markedly since the third quarter of 2011 as China buys less U.S. debt.

Even with the reduced pace of dollar accumulation, China’s official foreign exchange reserves remain exceptionally high compared to those of other economies, and well beyond established benchmarks of reserve adequacy. As of end-September 2012, the PBOC held $3.3 trillion in foreign reserves, equivalent to 42 percent of China’s GDP, or about $2,440 for every Chinese citizen. 

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