Ross: Renminbi Is Overvalued, Not Undervalued

The transcript discusses the Chinese government's interest in global perception and the complexities of currency valuation. It highlights differing opinions on whether the Chinese currency is overvalued or undervalued, with a specific disagreement with Mr. Trump. The potential impact of a 3% devaluation on state-owned enterprises' dollar-denominated debt is analyzed, noting a significant increase in interest payments. This financial burden is suggested as a reason for maintaining the current currency value.

What is the Chinese Government's current stance regarding their currency according to the text?

How does the speaker view the concept of REM NIMBY?

What potential impact would a 3% devaluation of the currency have on state-owned enterprises?

What is the estimated increase in the interest bill for state-owned enterprises if the currency is devalued?

Why might the Chinese Government be hesitant to devalue their currency?