Appreciating the Renminbi

By MATTHEW MCDoNALD

In the same year that China became SouthAfricas largest trading partner, and SouthAfrica the Asian giants second largest marketon the African continent, international attentionis yet again fixed on the financial policytussle between China and the United States regardingcurrency value. Current U.S. TreasurySecretary Timothy Geithner has led calls forChina to be labelled a “currency manipulator”in a yet-to-be-released report, accusing Beijingpolicymakers of purposely depressing the valueof the Chinese renminbi against the U.S. dollar,among other international currencies it tradesagainst. The chief issue for U.S. policymakersin the current situation is the detrimental effectthis is having on the already cavernous U.S.trade deficit.