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Opinion: Trump’s Charges of Currency Manipulation Hard to Prove

By Richard N. Cooper

U.S. President-elect Donald Trump promised during his campaign that he would charge China with currency manipulation on his first day of office, which is Jan. 20, with a threat to raise U.S. tariffs on goods from China by 25 or even 45 percent. What was this all about?

The Articles of Agreement of the International Monetary Fund, as amended in 1978, state that “each member undertakes to collaborate … to assure orderly exchange arrangements and promote a stable system of exchange rates. In particular, each member shall … avoid manipulating exchange rates … in order to prevent balance of payments adjustment or to gain an unfair competitive advantage over other members.” (Article IV(iii).)

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