Washington (April 17, 2018): President of US, Donald Trump said on Monday that Russia and China of devaluing their currencies.
“Russia and China are playing the Currency Devaluation game as the US keeps raising interest rates. Not acceptable!” Trump said in a Twitter post.
Trump’s tweet referred to what he sees as unfair trading advantages: if a country’s currency is artificially low, its exports are more competitive. Higher U.S. interest rates would generally increase the value of the dollar, making U.S. exports more expensive.
Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!
— Donald J. Trump (@realDonaldTrump) April 16, 2018
Since Trump took office in January 2017, the dollar has weakened substantially against most currencies, including the Chinese yuan and, until the U.S. imposed sanctions on Russia in the last few weeks, the ruble.Against the yuan, the dollar has fallen by 8.6 percent since Jan. 20, 2017, while it has appreciated 4.5 percent against the ruble. Until the U.S. announced sanctions on Russian oligarchs earlier this month.
However, the dollar had weakened by nearly 4 percent against the Russian currency. That gain was entirely erased by a two-day drop of 8.4 percent in the ruble on April 9 and 10.