A U.S.-China Currency War? What You Need To Know
After China let its yuan drop in value, the U.S. accused the country of being a "currency manipulator." Here is how China manages its money and what a dispute with the U.S. could mean.
Last Monday, China let the yuan drop to its lowest value since 2008. The currency is now trading at just over 7 yuan to the dollar.
Later that day, the U.S. Treasury Department promptly labeled China a "currency manipulator."
The decision is a step toward what could become an unusual kind of currency war, in which the U.S. would intervene to counteract the effects of China's weakened currency, or both countries even take steps to increase the value of the other's currency relative to their own.
Here are four things to
