China should hold the line on the renminbi-dollar exchange rate

From omfif.org

Dollar strength has generated tensions in global currency markets. This is especially challenging for Chinese authorities facing downward renminbi pressure given diverging US-China monetary policy stances, home-grown economic headwinds and the history of US-China currency market strains. In view of these developments, China should avoid renminbi depreciation against the dollar. US authorities should acknowledge that the renminbi pressures are in large part driven by dollar strength, keep the focus on China addressing its growth model and overcapacity and push back on any renewed currency tensions. The dollar has been ... (full story)