Kenya takes note of China's currency manipulation
In today's "news-you-probably-didn't-expect," comes a thoughtful, explanatory article on the subject of currency manipulation from the newspaper of record in Nairobi, Kenya: The Standard. It notes that Kenya imports 30 times more than it exports to China, and it suggests that competitive exchange rage pricing may be to blame:
... If there is anything that has fuelled the frosty relation between the world’s biggest economies, then it is the undervaluation of China’s currency.
It is understood that China’s Yuan is controlled by purchasing currencies of other countries, including US dollar. China buys disproportional quantities of dollars to keep their currency at a rate lower than it would be in a free market. This allows the Asian tiger to produce and sell her products cheaper as exports.
Observers argue that by depressing the price of its exports through currency manipulation, China by extension cheats in international trade.
Fiddling with exchange rates doesn't just hurt American businesses and workers; it distorts the international market -- and businesses and workers in East Africa feel the pinch too.
We're very happy that certain members of Congress are suggesting America use its economic might as leverage to get serial currency manipulators like China and Japan to halt this damaging practice.
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