Tan Kin Lian - Perspectives False accusation of currency manipulation
America (that is, the American government) has a practice of accusing other countries of manipulating their currencies. When Japan's economy and trade was performing well three decades ago, America accused Japan of manipulating its currency to boost their exports. 

America is now accusing China of manipulating its currency, also to boost their exports. This is an unfair accusation. Here is my reason. 

Every country has to protect its currency from speculative attacks. They have to keep their currency stable. They do not want the currency to depreciate, causing their imports to be too expensive, nor to appreciate, as it would hurt their exports. They have to manage their currency at a level that is optimal for their economy. They are not "manipulating" their currency. They are doing their duty to "protect" their current from external manipulation. 

The manipulators are mostly the hedge funds. They make huge profits by causing disruption in currency and other markets. They are likened to financial terrorists. These funds are usually based in America or other western countries.

By stopping other countries from protecting their currencies from speculative attacks, America is complicit in working with the financial terrorists. 

Small countries are often the victims of these attacks. Their currencies can depreciate significantly within a short time, causing great hardship to the livelihoods of their people. The inflation rate in their country can escalate out of control. They are forced to sell their assets, namely properties, industries and enterprises at great discount. The hedge funds and other international funds make huge profits on these distressed sales. 

When I read accusations of "currency manipulation", I find the accusers to be dishonest and despicable. They may be respected leaders of big countries, but their dishonesty and greed are clear to me.

Tan Kin Lian 


  




 

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