“The opportunity exists because the most important former manipulators, China and Japan, no longer undervalue their currencies. What is more, and whether they realise it or not, the fundamental interests of these East Asian giants have changed: they now have more to lose from the currency manipulation of others than they can gain by intervention of their own. The time is ripe for change.”
USAGOLD note: Two obstacles stand in the way of China manipulating the yuan lower: capital flight and its ambition to make the yuan a dependable reserve currency. Whether or not those obstacles will prove sufficient in the high-stress global economic environment remains to be seen.