Legendary Goldman Sachs analyst Jim O’Neill, who invented the BRICs in 2001, says any talk of a currency war between China and the US is “ridiculous.”
“The relations between the Treasury and China are very good. The problem is something called Congress. The U.S. politicians need to understand that there’s plenty of scope for another big guy on the block as well as themselves,” O’Neill said on Bloomberg.
Actually there’s a “grand bargain” between China and the US to let the yuan appreciate in exchange for more power at the IMF, he says. China is living up to its end of the deal by letting the yuan rise 3% since the summer and nearly 25% over five years.