No more free lunch via devalued currency
Just a headline at this stage, but you get the gist anyway.
Oh, here we go, Commerce Secretary Wilbur Ross statement:
This change puts foreign exporters on notice that the Department of Commerce can countervail currency subsidies that harm U.S. industries
Foreign nations would no longer be able to use currency policies to the disadvantage of American workers and businesses
(via Reuters)
I wonder if this is aimed at a country that maybe sets the rate for its currency each day and intervenes to stop it moving too much from that rate. You know … just as a hypothetical question.
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ps. Such a country is China. Each day authorities set a reference rate for the onshore yuan and restrict its movement to +/- 2%.
