PBOC Says Won’t Use FX in Trade War

The video discusses the ongoing currency tensions between China and the US, focusing on China's strategy to weaken its currency to aid exporters, which has raised suspicions in Washington. The People's Bank of China (PBOC) aims to calm markets by stating it won't use the currency as a trade tool. The risks of further currency weakening are explored, including potential financial instability and historical precedents. China's strategic responses, such as non-tariff barriers and consumer boycotts, are also considered, highlighting the complexity of the trade war and its long-term implications.

What risks does China face if it allows its currency to weaken significantly?

In what ways could China respond to US trade pressures according to the text?