The Latest Data on Chinese Currency Manipulation Show a Market on the Edge of Instability

 China is a chronic currency manipulator, in the sense that, like the great majority of the world's countries, the People's Bank of China (PBoC) intervenes regularly in foreign exchange markets to influence the exchange rate of the yuan. The US dollar, in contrast, is one of the 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.   . .

Follow this link to read the full post at SeekingAlpha.com