UNITED STATES (OBSERVATORY) – US President Donald Trump accused Russia and China on Monday of deliberately devaluing the currency as the United States raises interest rates.
“Russia and China are playing the game of devaluation while the US continues to raise interest rates,” Trump said on Twitter. this is unacceptable!”.
Trump points to what he sees as unfair trade advantages: when a country’s currency is artificially low, its exports are more competitive, while a rise in US interest rates generally helps the dollar appreciate, making US exports more expensive.
Since Trump took power in January 2017, the dollar has fallen sharply against most currencies, including the Chinese yuan and the Russian ruble, until the United States imposed sanctions in the past few weeks on Russia.
The dollar index, which measures the value of the greenback against a basket of six currencies, fell 11.2 percent since Trump became president.
In a bi-annual report released on Friday, the US Treasury Department again refrained from naming any of its trading partners as currency manipulators. The report came as the Trump administration continues to push ahead with potential tariffs and other restrictions and negotiations to try to reduce a huge trade deficit with China.