few currencies whose exchange rate floats freely in response to supply and demand. The fact that China actively intervenes in forex markets while the US does not is a chronic source of friction. . . .
However, data on China's foreign currency reserves shows that for the past two and a half years, China has been acting as the
ally, not the enemy, of those in the US who want to keep the yuan
strong. Of course, it has not done this out of concern for American
interests, but for its own. . .
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