As I mentioned before, China dumped the U.S. bonds last December and have bought Japanese and Korean bonds ever since. This move has pushed the value of Japanese and Korean currencies higher, thereby forcing the prices of their exports higher.
China has also remained in contention with the U.S. over tariffs and currency matters.
A currency war across the globe has broken out.
China seems to consider the currency matter one of the sovereign matters and have an intention not to yield. China knows what has happened to Japan after the Plaza Accord. They learned their lessons.
Some geopolitical events unfolding may have to be viewed in this context.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment