Tag Archives: Dollar

Managing The Dragon’s 2019 Predictions

“If you are going to be a bear, be a grizzly,” my father used to tell me. That’s the way I feel about going into 2019 with my five predictions for the New Year. Four of the five are dependent to a greater or lesser degree on the trade war between the United States and […]

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Managing The Dragon’s 2018 China Predictions

From the point of view of U.S. companies and investors, the direction of China’s currency; the level of overseas investment by Chinese companies; and the extent to which China might help to solve the North Korea problem are key questions going into 2018. MTD believes that 2018 will be another strong year for U.S. exports and that this strength will heavily influence China’s actions on other fronts, just as they seemed to do in 2017. If MTD is right, we may just run the table with our 2018 predictions. If we are wrong, we are likely to strike out on most of them.

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Is the Renminbi Undervalued?

Is the Renminbi Undervalued?

U.S. Treasury Secretary Timothy Geithner certainly thinks so. So do Democratic Senator Chuck Schumer and Republican Presidential hopeful Donald Trump. They all point to the massive trade deficit that the United States is running with China as evidence that the Middle Kingdom’s currency policy is giving Chinese manufacturers an unfair competitive advantage. As we’ve reported […]

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Currency: The End of The Discussion With China

Last week’s G-20 meeting in Seoul, South Korea was intended to be the venue where President Barack Obama would turn up the heat on China to revalue its currency against the dollar. That’s not exactly what happened. In advance of the meeting, the Federal Reserve announced that it would buy $600 billion of Treasuries to […]

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The Currency War: Post-Seoul

Those of us involved with China on a daily basis have been living with currency issues for a long time. Ever since China began racking up large trade surpluses with the United States, politicians and special interest groups in the United States have been charging that China keeps the renminbi undervalued in order to make […]

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The Great Currency Debate

On Thursday, the U.S. House of Representatives passed the Currency Reform for Fair Trade Act, which aims to crack down on Chinese currency manipulation by targeting imports from China and other countries with currencies that are perceived to be undervalued. With a final tally of 348 to 79, the bill was bi-partisan and passed with […]

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China’s Currency Basket: One Month Later

On June 19, the Peoples Bank of China released the yuan’s peg to the U.S. dollar, and announced that it would instead peg the yuan to a basket of currencies. China regards the composition of the currency basket as a state secret, and officials haven’t publicly disclosed what currencies are being used in the basket. […]

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Is China Buying the Euro?

After dropping precipitously from over $1.50 at the beginning of 2010 to a four-year low of $1.19 on June 7, the Euro has been recovering ever since. On Friday, the Euro closed at $1.26, up sharply in the week’s last three days of trading. Not wanting to suffer the same plight as Greece, Germany, the […]

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China Releases the Dollar Peg

The People’s Bank of China, China’s central bank, announced over the weekend that it will resume a gradual appreciation of the RMB against the U.S. dollar, and that it will manage the yuan’s exchange rate with reference to a basket of currencies, rather than pegging it to the dollar. The PBOC statement makes it clear […]

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Expect a Yuan Revaluation Soon

The Euro is under attack. As a result of problems in Greece, the massive relief package assembled by the European Economic Union to bail out the country, and economic storm clouds hanging over Portugal, Spain and others, the Euro is tumbling in value against the U.S. dollar. The Euro has declined 14.7 percent from the […]

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