Currency War: The guilt is not China’s alone - - Hans Werner-Sinn
Nov 9th, 2010 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Currency War: Since China pegged its undervalued currency to the dollar, every devaluation of the dollar in the wake of the American financial crisis has also meant a devaluation of the yuan vis-à-vis the other world currencies. The central banks of South Korea, Brazil, Taiwan, Japan, Switzerland and many other countries are buying dollars in order to protect their own currency against a revaluation and to defend their exports. Europe also became nervous after the euro exchange rate had risen to more than US$1.40, far beyond the purchasing power parity of $1.17.