It’s always ironic that a country with a fixed exchange rate, which many would argue is a rate set well below what the market would in order to feed their export economy, then levels the charge of currency manipulation against another.
This does shine a spotlight on a serious issue which is the relationship between global commodity prices and the value of the U.S. Dollar. Despite global demand in decline commodity prices have been increasing as a result of the historically low value of the USD. It also doesn’t help that Chinese companies exporting to the U.S. are being paid in dollars.
“Because the United States’ issuance of dollars is out of control and international commodity prices are continuing to rise, China is being attacked by imported inflation. The uncertainties of this are causing firms big problems,” Chen was quoted as saying by the official Xinhua news agency.