U.S. expert confident about China's responsible currency policy

Source: Xinhua| 2019-08-07 19:26:37|Editor: Shi Yinglun
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SAN FRANCISCO, Aug. 6 (Xinhua) -- China has been enforcing a good currency policy in the past six months, despite its difficult talks with the United States over tariffs and trade disputes, a U.S. finance expert said Tuesday.

Michael Yoshikami, CEO of Destination Wealth Management, a California-based financial advisory company, told Xinhua that China's currency policy has been consistent with what it was before over the past few months.

Commenting on the U.S. government's move to label China a so-called "currency manipulator," Yoshikami said the fluctuation of the Chinese currency, the RMB yuan, is in part a result of market forces, as the new U.S. tariffs have created problems for the economies of both China and the United States.

The U.S. decision to label China a "currency manipulator" is totally wrong, which not only violates the common sense of economics and international consensus, but fails to meet the quantitative criteria for the so-called "currency manipulator" set by the U.S. Department of the Treasury, said Chen Yulu, deputy governor of the People's Bank of China.

Chen denied China has ever resorted to competitive devaluation, saying China will not use currency as a tool for competition.

Yoshikami said he personally believed China will take measures to stabilize its currency to an appropriate level.

He said the rising trade frictions will impact investors and make them become more nervous.

"That's why the markets have been fluctuating so much. In the long run, if tariffs remain in place, it's going to cause prices to rise in the United States," he said.

Although it's unrealistic to expect China and the United States to fix everything in their disputes in the short term, as long as they take steps forward, the markets and the economies of both countries will react favorably, said the veteran U.S. investor.

"I think it's in both countries' interests to come to an agreement" over their trade disputes and tariffs, he said.