According to Xinhua on October 9, 2010, the U.S. manipulation of the exchange rate will lead to a global currency war and a new round of global inflation.
Chen Fengying, Director of the Institute of World Economic Studies at the Institute of Contemporary International Relations, said that the United States is the only country in the world that can truly manipulate the exchange rate. Chen said, “Recently, the U.S. has again been vigorously pressuring for the appreciation of the RMB, and the U.S. media even released news of a ‘currency war.’ This is how the exchange rate is covertly manipulated.”
Cao Honghui, Director of Financial Markets at the Institute of Finance of the Chinese Academy of Social Sciences, said, “The United States manipulates the U.S. dollar exchange rate and also manipulates the exchange rate of other countries.”
Source: Xinhua, October 9, 2010