Tag: Currency

There’s a Lot We Still Don’t Know About Libra

Last month, Facebook chief executive Mark Zuckerberg spent over five grueling hours answering myriad questions from the members of the House Financial Services Committee on issues like election interference, hate speech, censorship and discriminatory advertising. While it was an important reminder of the many dangers that Facebook already presents to our society, we didn’t actually […]

Read More

What’s Really in the Trade Deal Trump Announced With China

President Trump portrayed the “Phase 1” agreement he announced on Friday with China with typical fanfare, describing the pact as “massive” and “the largest contract” ever signed. “We made a fantastic deal,” Mr. Trump said during remarks on Tuesday at the White House. There are good reasons to be skeptical about those claims. The deal […]

Read More

Chinese Currency’s Drop Isn’t Entirely in Beijing’s Control

China’s currency weakened by 0.15 percent against the dollar on Tuesday. It was a decline that — on its own — seems unremarkable. But as the trade war between Washington and Beijing drags on, the value of the renminbi is increasingly at the heart of the global fight over trade, technology and economic dominance between the world’s […]

Read More

As Recession Concerns Mount, Dozens of Central Banks Are Cutting Rates

More than 30 central banks around the world have cut interest rates this year, as countries move to shore up their economies amid rising concerns over global growth, trade conflicts and the threat of a messy Brexit. #g-rate-cuts-countries-box .g-artboard { margin:0 auto; } #g-rate-cuts-countries-box p { margin:0; } .g-aiAbs { position:absolute; } .g-aiImg { display:block; […]

Read More

Trump’s Trade War Is Breeding Patriots in China

BEIJING — Earlier this week the Chinese government aggressively devalued its currency — the clearest sign yet that it is hunkering down for a protracted fight with the United States over trade. Currency devaluation is the mother of all retaliations. The move, designed to help offset the Trump administration’s tariffs against China, could goad America […]

Read More

‘Weaponized’ Currency and Mining Limits: China’s Responses to Trump Take Shape

BEIJING — China may turn its currency into a weapon. It has already stopped buying American crops. Its mining industry stands ready to hold back minerals that are crucial to making iPhones and missiles, and its policymakers are openly discussing doing without American trade. Nearing the end of a tumultuous week that left stock markets […]

Read More

China Signals It Will Continue to Weaken Its Currency as Trade War Rages

BEIJING — China signaled on Thursday that it might continue to weaken its currency, a move that threatens to again escalate the trade war with the United States. China’s central bank on Thursday set the midpoint of the renminbi’s daily trading range above 7 to the American dollar for the first time in more than […]

Read More

What’s at Risk if the U.S. Stumbles Into a Currency War

When the United States declared China a currency manipulator on Monday, long-building trade tensions between the world’s two largest economies spread to the combustible realm of currencies — with potentially huge consequences for the global financial system should the escalation continue. Did China allow the value of the yuan to fall against the dollar simply […]

Read More

Short on Cash, Businesses in China Rely on I.O.U.s to Keep the Lights On

SHENZHEN, China — China was on the cusp of the biggest building boom the world had ever seen when Zhang Zhiyang started his architecture firm. It was 2007, and the money rushed in for contracts to design residential complexes and an exhibition hall. These days, with China’s economy slowing and his own business dropping off, […]

Read More

The U.S. Labeled China a Currency Manipulator. Here’s What It Means

The Trump administration labeled China a currency manipulator on Monday, after China allowed the value of its currency to fall. The designation — which the United States last used against China in 1994 — is more a symbolic move than a substantive one. But it dials up the pressure in a trade war that has […]

Read More

‘Ready to Rumble’: U.S.-China Fight Puts World Economy on the Brink

ImageA screen showing stock prices at a Beijing securities company on Monday, a day when world stock markets fell sharply.CreditGreg Baker/Agence France-Presse — Getty Images To most people, Aug. 9, 2007, was an ordinary enough summer day. The stock market fell about 3 percent, sufficiently notable to lead the major newspapers, but hardly anything that […]

Read More

Global Markets Hit Pause After Wall Street’s Trade-Driven Rout

BEIJING — Global markets steadied on Tuesday after Monday’s dramatic rout, amid signs that China will not immediately act on its veiled threat to use the value of its currency as a weapon in its trade war with the United States. Asian markets ended broadly lower, but European markets were mixed at the opening. Futures […]

Read More

How China’s Currency Could Become a Trade War Weapon

A weaker renminbi blunts President Trump’s tariffs on Chinese-made goods. But the strategy carries risks beyond worsening relations with the United States. This article was originally published in 2018 and was updated on Aug. 5 after China’s currency fell. As the United States and China swap threats and mete out increasingly punishing tariffs, the world […]

Read More

China Hints at Weaponizing Its Currency, Rattling Markets

BEIJING — The trade war between the United States and China may be about to enter a more dangerous phase, one that could saddle the global financial system with new risks at an already turbulent time. That prospect, which would see Beijing using the value of its currency as a weapon to strike back at […]

Read More

Trump’s Trade Quagmire (Wonkish)

Remember the Vietnam quagmire? (Actually, I hope many of my readers are young enough that they don’t, but you’ve presumably heard about it.) In political discourse, “quagmire” has come to have a quite specific meaning. It’s what happens when a government has committed itself to a policy that isn’t working, but can’t bring itself to […]

Read More

White House Considered Weakening U.S. Dollar Before Ruling It Out

WASHINGTON — President Trump and his economic advisers met this week to discuss intervening in currency markets to artificially weaken the dollar, but decided against the idea, Larry Kudlow, director of the National Economic Council, said on Friday. Mr. Trump has made no secret of his frustration that the United States dollar has strengthened against […]

Read More

Facebook Is a New Form of Power

Typically for Silicon Valley, Facebook’s June announcement of plans to launch a global, digital currency—Libra—spoke of empowering billions of people, especially those without access to banking. Also typically, skeptics were quick to ask whether anyone should actually trust the behemoth with such a tool. France’s finance minister raised concerns about privacy, money-laundering and terrorist use, […]

Read More

Turkey’s Long, Painful Economic Crisis Grinds On

ARHAVI, Turkey — The terraced rows of tea plants climbing the hills above the Black Sea used to glint like money. Lately, they look like another casualty of Turkey’s long, grinding economic crisis. Lipton, the multinational giant, recently scrapped production at one of its three tea-processing factories in the area. It has slashed purchases of […]

Read More

In Firing Central Bank Chief, Turkey’s Leader Trades Credibility for Growth

LONDON — Turkey’s president, Recep Tayyip Erdogan, abruptly fired the central bank chief on Saturday, dealing a new blow to the institution’s credibility while threatening to intensify the nation’s wrenching economic crisis. The move, made in the early hours of the day by presidential decree, was the latest evidence of Mr. Erdogan’s unequivocal dedication to […]

Read More