---
title: Currency Manipulators
description: The strong US dollar has led to the US to label China as a “currency manipulator”; justifiable or is it everyone?
---

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# [Currency Manipulators](https://www.sandstoneam.com/insights/currency-manipulators)

 Written by [sandstoneam](https://www.sandstoneam.com/insights/author/sandstoneam) | Oct 2, 2019 9:18:00 AM

A nation's currency is cyclical in terms of its economic impacts. Think of it this way, a strong domestic currency creates:

- Cheaper imports; benefitting the consumer.
- More expensive exports; hurting production and employment.

On the other hand, a weak domestic currency translates into:

- More expensive imports; hurting the consumer.
- Cheaper exports; boosting production and employment.

So, considering all of the issues and uncertainties the world is currently facing, how can a country create a competitive advantage in global trade? To start, one could actively manage their foreign exchange market. Shifting from globalization to localization, a weaker currency boosts trade, making exports more competitive while discouraging imports.

**Figure 1** Illustrates the performance of the US dollar against several global currencies over a two year period. Above zero per cent the horizontal axis, the US dollar has appreciated against the respective currency, while below zero per cent, the US dollar has depreciated.

 

#### Bottom Line

As it turns out, the US dollar has been strong against the majority of the world – an unappealing feature in the midst of a trade war. Ironically, the strong US dollar has led to the US to label China as a “currency manipulator”. Justifiable or is it everyone? You be the judge.

[View full post](https://www.sandstoneam.com/insights/currency-manipulators)

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