(1/5) Exchange rate lies at the core of #financial market. Chen Yuan said, the #Trump administration formally labeled China a #currency #manipulator, further escalating its #trade war with Beijing, which will have an overarching and long-term influence.
mp.weixin.qq.com/s/0fq6pqPaY8g4…
(2/5) “The exchange rate dispute is just the beginning of a Currency War”, Chen pointed out that, “#China currently has huge dollar-denominated forex reserves and more than one trillion US treasury bonds. The U.S. has always been vigilant about it out of a #geopolitical concern.”
(3/5) According to Chen, “Once exchange rate ignites the ‘financial war’, the depth and width of the influence will be elevated to an unprecedented level. Neither the US nor China would benefit from it. As for China, we should prepare for the worst and strive for the best.”
(4/5) Chen said, “we should objectively reassess the role of our forex reserve, which lies at the core of financial market and directly impacts on money supply and #RMB stability. However, it has now become the target of the U.S. for launching the #trade/financial war.”
(5/5) Chen suggested, “We should reconsider the strategic meaning of our forex reserve, from “highly reliable core (national) asset” to “new focus or battlefield of financial war”. We need effectively allocate the forex reserve and prevent it from the shock of the financial war.”
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