In the face of a US bid to act on China’s FX market manipulation on last Monday (August 5th), when Yuan was devalued to 7.1019 to its lowest level against its American counterpart in more than a decade, on Sunday, the 11th of August 2019, a perspicacious bunch of former and current US alongside G7 officials told that China seemed to be well-insulated from serious consequences of G7 alongside IMF after White House had sought IMF’s help to settle China’s FX rigging issue.
In point of fact, last week, US President Donald Trump and his Administration had labelled China as a currency manipulator for the first time since 1994, accusing that the People’s Bank of China had been devaluing its currency by capitalizing its havoc-scale foreign reserve in a bid to offset impacts of 10 percent tariff hike on $300 billion worth of Chinese imports.
Nonetheless, as a response, People’s Bank of China (China’s Central Bank) had been quoted saying on Saturday (August 11th) that last Monday’s (August 5th) volatility on Yuan price was resulted from a worsened outlook of geo-political landscape amid a garrulous battle of quote between Washington and China, while China had halted purchase of US goods and United States said it would not pursue its business further with China’s heavyweight tech conglomerate Huawei Technologies.
Meanwhile, submissively hinting that picking a side amid a time when trade conflicts were lingering worries among investors alongside hindering growth of major economies, German finance minister, Olaf Scholz said in a statement on Saturday (August 11th), “A further escalation will only do damage. Everyone should keep a level head and tone down the rhetoric a bit. ”