Trump says the US should match a ‘big currency manipulation game’ in China and Europe
United States President Donald Trump has proposed the U.S. should ‘MATCH’ Chinese and European currency manipulation, sparking a dip in the greenback’s value.
President Donald Trump on Wednesday accused China and Europe of currency manipulation, suggesting that the US should follow suit to remain competitive.
“China and Europe playing big currency manipulation game and pumping money into their system in order to compete with the USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!”
The renewed attack comes despite the fact that the Trump administration formally stopped short of accusing China of devaluing its currency to gain unfair trade advantages just two months ago.
On crypto Twitter and Reddit alike, commentators were quick to note that in light of this “race to the bottom” monetary policy, Trump’s tweet is just about tantamount to a “direct order […] to buy bitcoin.”
The Treasury Department has repeatedly declined to charge China with currency manipulation, a term for when a country artificially weakens the value of its money to make exports cheaper and more attractive but has said it should be monitored for such practices. In the eurozone, the European Central Bank has suggested it might lower interest rates and add another round of asset purchases as the European economy slows.
The president’s provocation sent new waves through Europe, with one foreign exchange strategy expert telling CNBC that he fears the administration could slap on ‘countervailing tariffs’ on the E.U. auto sector, justifying it as a response to what the Commerce Department deems to be certain countries’ artificial currency depreciation.
Other currency strategists have remarked on the unexpected timing of the renewed attack on China’s currency policy, arguing that the yuan has not apparently been manipulated for the past couple of years.
With politicians weaponizing national fiat currencies to gain the upper hand in trade, the argument for crypto as a safe haven asset appears more robust than ever.