BUZZ-COMMENT-As US trade spat heats up, will China tweak yuan?

By Kitco News / February 28, 2018 / www.kitco.com / Article Link

The politically correct answer is no, but the question muststill be considered. Will China flex its iron-fisted control ofthe CNY as trade tensions with the US intensify? Officials havevoiced strong dissatisfaction at newly imposed tariffs onaluminium foil , ahead of trade talks with the US . Even before the brunt of duties on exports to theUS can be felt, Chinese economic data is starting to falter. Theofficial Feb manufacturing PMI, understandably stunted by theweek-long Lunar New Year holiday, still hints at a slowdown ingrowth . A tapering in GDP growth should be nosurprise - analysts have long expected that the effects ofChina's massive deleveraging campaign may start to show up thisyear . But given the likelihood that Trump will pushfor more tariffs, could drastic times call for drastic measures?China isn't one to sit back and wring its hands, and it wouldn'tbe the first time they have interfered in the CNY. As PresidentXi Jinping looks to extend his reign indefinitely and make Chinagreat again, the yuan could end up being a political tool in anytrade standoff with the US.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^CNYweekly: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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