China has been accused of currency manipulation . What does that mean? Does the government intervene in currency markets to sometimes strenthen and sometimes weaken its currency, or does it always intervene to weaken its currency?
China has been accused of currency manipulation . What does that mean? Does the government intervene in currency markets to sometimes strenthen and sometimes weaken its currency, or does it always intervene to weaken its currency?
The currency exchange rate is the rate at which domestic currency is exchanged with foreign currency in the economy. Thus, it is the rate of foreign currency in domestic currency terms. The process of currency manipulation is the process in which the government as well as the central bank of the economy intervenes in the exchange rate market in order to artificially lower the value of their currency in the currency exchange market. This is the process of currency manipulation and China has been accused of following this practice in the international market.
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