What is currency manipulation? | CNBC Explains

President Trump has backtracked on calling China a currency manipulator, but what does it mean exactly? CNBC's Uptin Saiidi explains.
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[@gearzone26111]

Federal Reserve Bank is a currency manipulator. A central banks that creates money out from thin air, that is currency manipulator.

[@carlosdelius747]

gearzone2611 vv

[@lastnameford7703]

I’m going to take everybody with me you think this is a fucking joke where is my money why am I being stopped why am I sitting in the woods drinking all the time there is no jobs I’m tired of working and not getting paid enough to do anything with my life fuck you Donald Trump I hope all of you get hurt

[@godzilla964]

You may have a point if America defaulted its currency to the gold standard. But it doesn't, the dollar's value doesn't come from how much gold we have, we just give it a value. It's a lot more complicated than that, but that's the basic gist.

[@kiantamar]

@Leo Bruno The difference is that when a country's central bank creates money from nothing, they cause inflation in their own country. The US Dollar, on the other hand, is the reserve currency of the entire world. So when the Federal Reserve creates money, it causes inflation in the entire world economy. The US economy takes advantage and every other nation pays the cost. Why do you think the US wages all these wars? (hint: they don't want any other currency to replace the dollar)

[@phillipgaley4416]

@@godzilla964, if our elected officers could be trusted to manage the national fisc honestly, there wouldn't be a Federal Reserve

[@doodelay]

I don't think he explained how they manipulate it

[@Flowerz__]

doodelay yeah I still don't get it

[@anitagarg3316]

doodelay by devaluation or bringing down the price of a yuan against dollar so when u but stuff from China it's cheaper

[@beterhans]

yes it will make the video to long. you shoud check khan video he use sample example to tell why when your economy is good you money wroth more and it will hurt you back. and how you can keep your money worth less. as a normal people money worth more is good for country or company monery worth less is good

[@ajinkyaubale9713]

beterhans send me link pls

[@beterhans]

Yeah sure here is the link will make you understand but you need a little will to learn www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking#china-us-debt-situation

[@felipealvesdourado1584]

This was a poor explanation, in compharison with other CNBC videos. You could've talked about the market mechanisms that make currency manipulation possible and also give some examples of market manipulation in history; Talk about how that affects the life of people, entrepreneurs, politics and the market itself, too. I'm just saying it cause I know you guys can do better than that.

[@werewolf-theshow7260]

I'm from South Africa and over 12 banks here manipulated the Rand for 6 years, thus weakening it.

[@Thegreatest342]

Hai ke. But since the banks are owned by whites nothing will be done there wont be outrage. These people manipulated the rand spending trillions a day but people are still concerned about zuma when our rand collapsed because of the white owned banks.

[@langap06]

What I don't get is how did the commission determine how much we gained or lost from weakening the currency? Banks do this all the time.

[@sevenhenson3926]

Please explain things in detail and not just gloss over. At the end of the day this video is not for kids

[@bkit5]

I'll explain simpler. Market value of an African currency is very low. US dollar has a high market value. Who determines the currency values? Investors and common men who invest in foreign currency based on the projection of the country economic growth. The US can get something for 10 cents if it made it in Africa, where as it would cost a dollar to make it in the USA. Reason? currency market value. So now US companies give 500 billions of dollar to African companies to manufacture for them. Now the African companies need to convert the US dollars they received into African currency so that they can buy and pay people and raw materials and start the work. When they buy the African currency using US dollar, demand for African currency goes up increases the market rates. Now since billions of newly traded African currency is brought back to Africa, the value of the African currency inside African goes down. They call it inflation, hence what was costing 10 cent to make in Africa will now cost 20 cents, because of both inflation in Africa and increase market value of the African currency. Because it is now more expensive the US companies will not give the same amount of business to African anymore. So the African government does shady thing to manipulate by the market value of African currency by purchasing billions of the US dollars from their reserves of the African currency they have. This will increase the US dollar and reduce the market value of the African currency, because there is more supply of African currency in the Foreign Currency Exchange Market.

[@emooki886]

@@bkit5 I.. applause you, thanks!

[@bismarck9938]

@@bkit5 wow, you're awesome dude at least I got to understand something

[@Foxnet121]

Really nice, but here's how China actually manipulates its currency. If a US compay wants to buy in China, it needs to exchange USD for Yuan. If a European, Turkish or Japanese wants to buy from China, it needs to do the same, hence, the Chinese Yuan will increase in value while the USD, Turskish Lira, Japanese Yen and Euro will decrease in value as they are being "sold". What China does, therefore, is the opposite: buying exchange currency with its own in order to one side, keep the price of USD, €, Yen and Lira high, and keep the price of the Yuan low. Summary: while everyone is buying Chinese Yuan which would normally increase its value, China is buying all other currencies with Yuan to keep the value of the other currencies up and the one of Yuan down.

[@fendermon]

This makes sense, and is the first explanation I've seen yet that does. Thanks @mon_fi

[@aswintj7414]

Yes..your explanation makes sense..👍

[@fokboy]

Correct me but I heard a different version... That for many years, China has been buying it's own yuan back from overseas making China lose foreign currency... recently it has stopped buying their own yuan back... hence leading to the recent drop in value fall above 7...

[@Foxnet121]

@@fokboy Why would China try value their currency? They have no purpose doing so since their economy is mainly resting on exports

[@fokboy]

@@Foxnet121 True, yet doesn't china have a lot of loans to poor countries? and also a 1 trillion dollar budget for one belt road? Wouldn't decreasing the value of yuan mean decrease in wealth for the chinese too? how does the balance work? Thanks

[@enteradj]

Next do a video on “HOW to manipulate currency”

[@rockycomet4587]

Lol, I'm game.

[@josiegabriel1503]

This is THE worst explanation of currency manipulation.

[@bkit5]

I'll explain simpler. Market value of an African currency is very low. US dollar has a high market value. Who determines the currency values? Investors and common men who invest in foreign currency based on the projection of the country economic growth. The US can get something for 10 cents if it made it in Africa, where as it would cost a dollar to make it in the USA. Reason? currency market value. So now US companies give 500 billions of dollar to African companies to manufacture for them. Now the African companies need to convert the US dollars they received into African currency so that they can buy and pay people and raw materials and start the work. When they buy the African currency using US dollar, demand for African currency goes up increases the market rates. Now since billions of newly traded African currency is brought back to Africa, the value of the African currency inside African goes down. They call it inflation, hence what was costing 10 cent to make in Africa will now cost 20 cents, because of both inflation in Africa and increase market value of the African currency. Because it is now more expensive the US companies will not give the same amount of business to African anymore. So the African government does shady thing to manipulate by the market value of African currency by purchasing billions of the US dollars from their reserves of the African currency they have. This will increase the US dollar and reduce the market value of the African currency, because there is more supply of African currency in the Foreign Currency Exchange Market.

[@darmanhashim]

agree

[@brennencox516]

well yes, it could've been better.

[@abhaypatil87]

What's up with all this childish and stupid background music!

[@makrolee2730]

damn, this guy confused me and i still dont get his point!

[@jjgerald7877]

Though it is tempting to try your hand in currency manipulation, it is hard to do especially if you know it has consequences in the economies of nations, hence a whole population.

[@aviksaha2746]

Let's start the barter system again...

[@pirateadventure895]

I want to move to the republic of monopoly who else does

[@cryptobuzz1680]

no thanks imagine u keep landing in jail zone..straight to jail my friend

[@laopang91362]

Print money is a form of currency manipulation.

[@dieguitoviajero5183]

There´s no such thing as "currency manipulation". It is just a simpler way to raise or low prices of everything. What China did is kind of quoting themselves higher onto the United States, which is totally acceptable. It is up to american consumers whether to decide buying or not buying to China.. someone please correct me if I am wrong? This video explained nothing..

[@1960rlv]

Step 1: customer buys Chinese product from Walmart. Walmart gets cash, customer gets product. Step 2: Walmart sends cash to Chinese supplier of product, Chinese supplier sends more product. Step 3: Chinese supplier has no use for US dollars in his operation because they use yuan. He/she/they deposit dollars at bank and receive yuan. Step 4: The local bank deposits dollars at the central bank of China (PBOC) and receives yuan. Step 5: The PBOC deposits dollars at the forex in exchange for yuan.....oops, that won’t work. Because the current account deficits are so large the dollar deposits cause a glut of dollars at the forex and creates a situation where the dollar is devalued against the yuan. A devalued dollar causes prices in the US to rise, price inflation. This, left unchecked, would result in a natural balance of trade. Step 6: In order to abide by the US political interest to keep US consumer prices low, the Chinese don’t deposit the dollars at the forex, they purchase US treasuries. This enables the US to fund it’s massive budget deficits while simultaneously keeping consumer prices low. How much longer will this arrangement function? I don’t know but but it doesn’t end well.

[@CarsSupercars]

Nixon created 💵 printings which is not gold based but petrol based ...so US has created more 💸💸💶....now more buying power.

[@darkorbitpro1]

whats going to happen when you cant pay the interest on the rising currently 21 trillion dollar debt anymore?

[@sarcasmpod]

Had to watch this when i saw the rand manipulation news

[@trollasaur3012]

America biggest currency manipulator

[@kartikeykumarmalkani4178]

how is the rate of a country 's currency determined

[@darkking9800]

Dollar is the worst if were just talking about currency manipulation. First they keep on printing dollars and we don't even know how much they printed, second they are planning to create one trillion coin to pay their debts so yeah.. that's one of currency manipulation.

[@darkking9800]

By creating conflicts just like in Ukraine, fear and being dominant dollar is definitely strong💸💸 that's currency manipulation. making it America's Imperialism 💸💸

[@dazedhavoc]

Rename this episode “how to explain something without upsetting China and without any facts whatsoever “.

[@anasghaffar7837]

I wish you understood it well enough so you could explain it simply!

[@noahschmartz2354]

As usual , everything except the interesting point, How does the monopoly money go from ten=1dollar to eight=1dollar. It beggars belief how this wouldnt occur to the producers here.

[@katwillny]

Lower your music

[@willengel2458]

quanttive easing is currency manipulation. and US does it to export inflation to other nations. if you google Plaza Accord we did that to Japan to slow down the economy, for the past two decades. that's some ally to you. LOL

[@darmanhashim]

that is the explanation cnbc wants you to believe. they think youtube viewers are only usa. but it is the whole world

[@ronydsa6485]

Please update this article with more intrinsic detail

[@yodaman3406]

*Talks about China* *Shows footage of Hong Kong instead*

[@yodaman3406]

@Reuben Johnson We, the people of hk, don't really think so

[@henrychau2210]

Yoda Man We, the majority of HK people, do think so

[@scottsummers3868]

He's an Indian reporter too. First bullshit alarm went off in my mind.

[@Hellboy8675]

Slim shady track vibe

[@zakariazaki7513]

Thanks for video keep going 🤠 greeting from Morocco

[@tapaspanigrahi3331]

Loved the way he said it 🤣🤣🤣👌"Choina iz a corrency maniipulator "

[@anjalyb6935]

He explained well in this short span of time.. I'm doing PhD in central bank intervention.

[@davidwalter8821]

Hello how are you doing Anjaly B

[@zoeigarashi4271]

Too simplistic. In the case of Japan it’s the reverse: When the economy goes bad the Yen goes up (mostly)

[@stephanenkeuleu2987]

Why does the Yen go up? Is that because investors look at it has a chance to buy some Yen dollars?

[@zoeigarashi4271]

Stephane nkeuleu In the case of the Japanese Yen I think it’s an interplay between Japan’s role as an exporter and the Japanese Yen’s role as a “safe haven”. Since Japan is famous as an exporter (not really true in certain respects), a weak Yen is seen as good for exporters and hence the stock market and/or the economy as a whole. Conversely, when the Yen is strong it is seen as bad for the economy - hence the (to my mind illogical but apparently true) inverse relationship of when the Economy is bad the Yen goes stronger. This relationship was more or less true for about 1-2 decades until it was broken 4-5 years ago when Japan had both rising Yen as well as rising stock market and GDP figures. The optimism with Abenomics seem to have broken the weak economy -> strong yen relationship, making it more a conventional one. The other element is the Yen’s “safe haven” effect. For some weird reason, Japan is seen as Asia’s Switzerland i.e.the safe place/currency to park your money. When the global or regional economy goes bad, weirdly, the Yen goes up. This was weirdest whenever North Korea tests a nuclear bomb or a missile. You’d think people would want to get out of Japan and the neighborhood, but somehow the Yen rises. When oil prices raced to the bottom as Saudi Arabia ramped out oil production to snuff out the US’ shale oil producers and Iran prior to the lifting of sanctions the Yen also went up. 2017/2018 seems like it’s going to be a conventional year: the strong economy is lifting the Yen up as well. In theory this is bad for Japan’s exporters, except that the real answer is “not necessarily”. Most products that Japan exports are high value added technical stuff that can’t be supplied by other countries/companies (30-40% of the iPhone, I believe) so dollar sales won’t suffer too much although the revenues in Yen terms go down. This is bad for Japanese companies, yet not really too bad because they have been sitting on trillions of dollars of cash that they haven’t used yet so they have quite a cushion.

[@brijavpogi]

Stephane nkeuleu is speechless......

[@curtiscarpenter9881]

A currency plan is vital for a nation to plan Quantive easing etc.

[@nlama1296]

In layman terms this is currency manipulation, it is when money from exports outweighs the costs of china devaluing their currency, For example, If one yuan can buy 0.15 US dollars, and China makes 1000 US dollars or 6666.67 yuan from exports originally, and China devalues its yuan by 50%, then one yuan can only buy 0.075 US dollars, and China needs to sell 13333.33 yuan or 1000 US dollars worth of products to make the same amount of money as before. However, if the demand for China’s products increases because they are cheaper, then China can sell more products for more money. For example, if China sells 16000 yuan or 1200 US dollars worth of products after the devaluation, then China makes more money than before, even though its currency is worth less. This is how currency manipulation gives China an advantage in international trade. Hope this helps

[@annonymouscommentor3694]

"Reasons for currency manipulation" should be the name of the video.

[@hermanman8235]

Money: currency manipulator GOLD:😁

[@restless42]

Alright, but why does the republic of Monopoly sell muffins that are at least twice as big as their overpriced houses?

[@mocho849]

Currency manipulation is not a problem. Spending more than we can afford is the problem.

[@LuisHernandez-tm5jy]

Note on the back ground music turn it down it’s hard to hear you speaking as it is!

[@georgeashby4852]

Turn the music volume down

[@chrisjenkins9978]

If the dollar is up for sale, it stands to reason to buy it if it helps achieve your goals. I don’t see the difference between that and manipulating interest rates.

[@haris000000]

So when the currency goes down its like a tax on the middle class ...?

[@napospapas4484]

Is tax on everybody.

[@floridaboy1700]

The goofy music downplayed the seriousness of this issue. I'm glad CNBC doesn't mind countries cheating our businesses.... thanks

[@Ahmad_9134]

Wait? So if someone does better the the USD they fall under currency manipulation?

[@maxjing61]

awkward asian barista guy going: stop not looking at me

[@trangho9221]

so touching for an excellent video

[@semarmanganov4767]

Every country manipulates it’s currency for sustainable exchange. Drawing bill from market n selling more USD in the market are also manipulating the money

[@MG-ok6nu]

Exchange rates vary based on how well an economy is doing. Randomly dropping the exchange, arbitrarily, is currency manipulation.

[@udayasreea9705]

At present the trade between countries takes place in the system of Exchange Rates between the countries (Exports and Imports, prices cheaper or higher with the changes in the value of currency, )The solution is, the price of goods and services to be fixed to the date when purchases takes place , for eg the USA purchased 1 lakh worth goods on 11.5.2020 ,and paid 50 thousand rupees as initial payment the remaining 50 thousand rupees to be paid with the agreement of valid six months,in this period upto 11.11.2020 though the CHINA currency Revalued, or Devalued, the USA has to pay 50 thousand rupees only, like that trade agreement should be made between the countries , with this we can avoid trade wars, The future trade depends on the interest of the USA by accepting the changes made in CHINA currency.

[@fulaan1]

2:20 if your economy is getting stronger why would inflation be an issue? There would be know need to produce more currency since it’s purchasing power is increasing. Can someone with more knowledge explain?

[@Blaze6432]

global competitiveness. If they sell for less but keep the domestic prices low by self relying for domestic products. If you look at how much a Chinese makes(1.4k), it's less than half of an American (3.7k). International, an American individual is much more economically superior than a Chinese individual. But in their countries, since China is self reliant, prices are kept so low, The Chinese have a rather heavy purchasing power.

[@Always.Smarter]

Ohh so currency manipulation is when they manipulate a currency. thanks for clearing that up CNBC, I can always rely on corporate media for in-depth explanations of important topics.

[@Phoenix-ov5gg]

Just search rubles to yuan, break down to weekly and you will see currency manipulation. Russia selling huge quantities of yuan to purchase rubles, enough to keep the currencies pegged.

[@EdiSaFukeratMo]

Wtf?!!!!!!!!!!!!!! You call that providing info for the masses. Damn, no wonder your company's rating have dropped.

[@jessicakoh7386]

2:24 is that China? What’s in the right hand side of the screen?

[@jeremychristian5409]

So basically, Trump is being Trump so that everyone can learn more economic jargon? Such an educative leader. No wonder Muricans voted for him.

[@ChineseAmerican50]

Please don’t put music on

[@piyushdas5151]

Fuck it i didn't understand this anyone who can make it simpler?

[@vidhyashanker9873]

so he who owns the Valuable currency is not the richest Rather the one who supplies the goods to all. After all we can't eat money.!!

[@victorchew151]

Teaching the kids how to play monopoly.

[@gunjanmehta5102]

You guys are putting great learning videos on your KZbin Channel. Great work guys... Keep rocking...

[@phillipdfarmer]

China is the only country he’s called a Currency manipulator.

[@sreehariedathil4868]

Pls do a video on Mukesh Ambani and his conglomerate....

[@mr.eazzi7]

So how does monopoly money gains value in monopoly land?

[@marcobozzo7192]

Volume music to high,ich verstehen kein einzige wort

[@kentheengineer592]

💀 Bro Currency Manipulators Would Not Happen With Repo Market Lending Credit As Money But to Be Fair The Problem Is Not So Much With The Issuance of Money But The Behavior of Each Issuer As a Competitor in the Free Market

[@kaushalmaurya1091]

Did they just use Eminem's Real slim shady theme.. 0:45

[@chaoticlife311]

So... let me get this straight. China devalue its currency so that the goods china made is cheaper for consumers in all parts of the world including America. But America dont want low price and label china as currency manipulator so that china currency is more value thus making china goods more expensive for american consumers. So... does america wants to continue keeping cost of living low in america or is america more willing to pay more for china goods? Which one...Orange man did say, the trade has to be in favour of America, so the price of goods have to be low, in so doing it means devaluing of currency, so that america can buy more. But orange man says the price needs to be higher, which means america buy less, in so raising the value of currency. Is orange man for america or against america.

[@MG-ok6nu]

No one other than the Chinese refers to Trump as the orange man

[@lynnadler429]

Accusation completly unfounded, because China has the right to buy or sale the RMB, on the open market, to keep its exchange rate to a convenient level. More than that, the Chinese currency renminbi (yuan) is one of the IMF basket of reserve currencies since 2015, that mean the Chinese currency renminbi is reliable, safe and freely to used. Otherwise, you can use the Chinese currency renminbi (RMB) as a hard currency in the same manner you use the USD, the Euro, the GBP, the JPY

[@niltondossantos9790]

I think U.S the Greater all manipulated in world....😀😀😀

[@darmanhashim]

you mean paper money with no value.

[@Rwpinkfloydfan]

What was worst? The explanation, music or unnecessary politics?

[@francisfrank3571]

What i just got from the video is prejudice CNBC treating to China and proud of what America has done.

[@reis1185]

Remember 1970 Plaza Accord

[@mansoorsyed6232]

Most of your videos are not understandble please make changes to understand viewers

[@dejotou]

How much China manipulated CNBC to put out this friendly video

[@jon_nomad]

And Quantitative Easing is not?

[@cowidster]

The music is just annoying.

[@jasondong9721]

Federal Reserve is biggest manipulator?

[@goombah_ninja]

Came here after india was put in currency manipulation watchlist.

[@parthib1]

I didn't understand anything 😅... did anyone?

[@joshhawn3988]

thise asian girls where back there like wtf is he doing? lol Prob not smart to have cash in public.

[@davidchristian8473]

the music is higher than the voice

[@johnc1014]

So, in the U.S., the federal reserve is a private bank given monopoly status over U.S. currency. I disagree with this and believe anyone should be able to create their own currency and use whatever they deem best for themselves. Crytocurrency is a good start, but I think currency should be completely denationalisation and instead be just another consumer good.

[@paolee2730]

2 years later, no real solutions yet.

[@katlegorapelang1048]

I understand fully

[@MrMaybe-rm6bo]

I still dont understand

[@bossmadammoose1948]

Philippines must execute Currency Manipulation and Devaluation

[@rajagopaln6641]

Not clear explanation and I didn’t understand much of currency manipulation

[@godlyboy]

Safe, stable and free to use. Cheers!!!

[@MOBMJ]

and trump is a (stock market manipulator) perfect example look at all the tweets he posts

[@rockycomet4587]

MAGA 2020 LANDSLIDE!!!

[@Dihorse371]

US largest currency manipulator of the world.

[@oliverphippen1957]

Not a good explanaition ????

[@scotthuber7094]

Wow, I'm surprised comments are allowed here.

[@alchemium]

China has been eating US lunch for decades. Hope it will change.

[@crazieeez]

Trade is mutually beneficial. No one is eating anyone's lunch. It's just who gets to eat more. You make it sounds like trading is a negative sum game.

[@scottsummers3868]

Let the pigs eat, America doesn't see much worth an appetite for.. Noone wants business with China.

[@jarrodyuki7081]

china needs US currency and oil to complete belt and road initiative. chinese students also need to stay in the us to siphon tech secrets.

[@luhaizhou]

Thanks for your efforts, but see the comments, maybe you need to find another job

[@rangogreen6418]

China = 8 yuan for 1 cup of coffee Vs Usa = 1 usd for 1 cup of coffee That not fair for China since China need to pay more money than Usa for 1 cup of coffee!

[@mynameisbubu]

Today 6.33 yuan for 1 cup of coffee. USD is getting weaker.

[@ramrajasagi8124]

Is the guy at 0:55 from Buzz Feed's Worth IT series?

[@Slyfox750]

I felt as though this explanation was sub par.