Donald Trump stokes fears of Russia, China currency war

Tuesday, 17 Apr, 2018

The US President Donald trump on Monday accused Russian Federation and China of artificial devaluation of national currencies.

"Russia and China playing the currency devaluation, while the USA continues to raise interest rates".

Trump has repeatedly blasted Beijing for failing to reduce its trade surplus and open its markets to American investment.

Meanwhile, the USA dollar has been falling against the Chinese yuan for 16 months and is trading near the lowest since mid-2015.

On April 6, the US Treasury Department added 38 Russian businesspeople, senior officials, and companies on its sanctions list, in response to Moscow's alleged "malign activity".

Trump's suggestion that a currency war is underway comes as central bankers and finance ministers from around the world prepare to gather in Washington for the Spring meetings of the International Monetary Fund.

More widely, the United States dollar index, which measures the greenback's value against a basket of major trading partner currencies, has declined by 11.2 percent since Mr Trump became president. The report came as the Trump administration pursues potential tariffs, negotiations and other restrictions to try to cut a massive trade deficit with China.