In Comments Submitted To U.S. ITC, MSCI Argues Chinese Currency Is Massively Undervalued
On Friday, Oct. 7, the Metals Service Center Institute (MSCI) filed a post-hearing submission to the U.S. International Trade Commission (ITC) regarding competitive conditions affecting the U.S. aluminum industry. The submission followed testimony in late September before the ITC by Metals Service Center Institute (MSCI) Board of Directors Vice Chair and President and Chief Operating Officer of O’Neal Industries R. Holman Head, who called for tougher government action to halt unfair and illegal trade practices, particularly by China, that have harmed the U.S. aluminum industry.
The post-hearing submission addressed commissioners’ questions about currency manipulation. MSCI reiterated that its position is “that the Chinese currency is significantly undervalued” and that the Chinese policy to undervalue its currency has been in place for nearly two decades. The submission demonstrates “that the actual yuan-dollar exchange has persistently differed from the equilibrium exchange rate” and that “the policy has led to the Chinese accumulation of over $3 trillion in foreign exchange reserves, an amount that is 8-9 times the level that economists suggest is needed for financial stability.”
Click here to read the entire submission.