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By Jim O'Neill
Published: November 21 2010 20:25 | Last updated: November 21 2010 20:25
In recent weeks, the phrase "currency war" has been used liberally. Let us hope this is a passing fad: it is inappropriate, and actually a fiction. In truth there are no real currency wars, just normal currency markets responding to events.
Let us review the facts. The Chinese currency has risen by about 20 per cent against the US dollar in the past five years. About a tenth of this appreciation has happened since this summer. On a trade-weighted basis the renminbi has risen by about 14 per cent over the same time. Whichever measure you use this is quite a move, and one with powerful consequences.
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