Criticism has come from both the United States and China on the issue of currency. China is complaining about the US Federal Reserve's decision to inject $600bn into the economy. Which China is saying, "Weakens the dollar at the expense of other countries' exports". The US on the other hand, is shooting back accusations at China saying China is manipulating their currency to boost the country's exports. It seems countries trying to weaken their currency so to make their products more appealing (cheaper) for the consumers. By having a lower currency, countries are likely to see increased exports with other countries which leads to stronger international ties. Looking at what happens when a country's currency is high makes Japan a terrific example. As an effect of their currency being high there are few exports out of the country because people can buy products elsewhere. This dooms Japan to face an economic crisis by lowering the country's outside trade. So far the US dollar has been the dominate international currency but looking toward the future it seems that the yuan is making progress to move forward.
To view the article and Chinese President Hu Jinta's interview: http://www.bbc.co.uk/news/world-asia-pacific-12203391
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