UNITED STATES (OBSERVATORY) – President of the United States Donald Trump accused Russia and China of devaluing their national currencies, while the US raises interest rates.
“Russia and China are playing a currency devaluation, although the US continues to raise interest rates.” It’s not acceptable, “Trump wrote on his Twitter social page.
The head of the White House wrote that he considers unfair trade advantages: if the country’s currency is artificially low, its exports are more competitive. Higher interest rates in the US usually increase the value of the dollar, making US exports more expensive.
Since Trump took office in January 2017, the dollar has weakened significantly against most currencies, including the Chinese yuan. In addition, the US currency rose against the Russian ruble after last week the US announced new sanctions against Russia.
Against the yuan, the dollar fell 8.6% from January 20, 2017, while against the ruble, growth was 4.5%.
However, until the US announced sanctions for the Russian oligarchs earlier this month, the ruble rose nearly 4% against the Russian currency. This profit was completely eliminated as a result of the two-day fall of the ruble by 8.4% on 9 and 10 April.
Moreover, the US dollar index, which measures the value of the dollar against the basket of major currencies of trading partners, has decreased by 11.2% since Trump became president.
The US Treasury in the semi-annual report on April 13 again refrained from appointing major trading partners of Washington as currency manipulators.
The report of the US Treasury appeared against the background of the fact that the Trump administration intends to introduce new import tariffs to try to reduce the huge trade deficit with China.
The report does not mention the recent threats of Trump on the establishment of tariffs on Chinese goods worth billions of dollars and treasury restrictions on Chinese investments in the United States.