Depreciating dollar hits market

Many foreign governments and researchers have been saying since 2002 that the undervalued Chinese currency renminbi is to blame for the world economic imbalance and especially that between the US and China.

They claim that renminbi's low exchange rate against the US dollar has led to China's huge favorable balance of trade with America, and the widening trade deficit of the US with China has caused the latter's foreign reserves to grow too fast.

Therefore, they believe, the world economy will return to a sustained and stable development once the renminbi exchange rate rises high enough against the US dollar.