Last Friday, we had a spirited discussion about the US Senate’s currency appreciation bill. Here’s the hit.
Yesterday, the US Undersecretary for International Affairs (who is charged with formulating US dollar policy), Lael Brainard, stated ” Renminbi appreciation on its own will not erase our trade deficit.” While it’s unusual to get a direct refutation of this theory by the administration, the comments reflect what is well known at the US Treasury: a stronger currency doesn’t solve the issue of the US-China trade imbalance. The experience of the massive appreciation of the Japanese yen and its failure to significantly reduce … …READ MORE
Tag Archives: Lael Brainard
Money in Motion makes the call on Yuan:
China and the New US Treasury Nominee
In an essay released Monday in Beijing, Chinese central bank governor Zhou Xiaochuan called for a creation of a new currency to eventually replace the US dollar as the main global reserve currency. This joins Russia in making a call to shift the global economic fulcrum away from the policies of the United States and wealthy nations. The currency impact was immediate as the Chinese Yuan dramatically strengthened in off-shore (NDF) trading.
As the world’s largest holder of US dollars as a reserve currency and US Treasury securities, China appears to be growing more and more assertive over it’s rights. … …READ MORE
