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Thu, 2016/12/08 - 2:19pm | Your editor
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The overnight 8.8% drop in the dollar exchange rate of the renminbi Dec.6-7 was not a declaration of war against the US but an example of fat finger currency mistakes. During the night when currency markets are closed and there is not much liquidity things can go wrong, as also happened with sterling in Sept.

I wrote about the renminbi currency movement yesterday. There is no there there despite rumors that Beijing engineered the drop. It did not. In fact it is trying to maintain China's currency against risks of higher interest rates and illegal capital flight outflows by corporations and fatcats using foreign investment, Hong Kong insurance, real estate, and other ploys to get their money out of China. Both Donald Trump and Xi Jinping are trying to keep the renminbi up.

 

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