The US has announced restrictions on the activities of Chinese diplomats. Is a “currency cold war” looming over European Banks?

The U.S. state department on Wednesday (September 2) issued a statement, said it would activity restrictions for Chinese diplomats in the work, including the Chinese ambassador to the United States, a senior diplomat and meet with local officials to visit the United States university approved by the us, China’s ambassador to the United States embassies and consulates in hold more than 50 people outside dimensions of culture activities must be approved by the United States.

The United States has said it will require senior Chinese diplomats to obtain state Department approval before visiting U.S. university campuses and hosting cultural events for more than 50 people outside embassies and consulates.

The United States said the move was in response to China’s restrictions on American diplomats in China. It’s part of the Trump administration’s campaign against alleged Chinese influence and espionage.

The State Department said it would also take action to ensure that the social media accounts of all Chinese embassies and consulates were “properly identified”.

“We’re just asking for reciprocity. “The authority of our diplomats in China should reflect the authority of China’s diplomats in the United States, and today’s step takes us very much in that direction.”

It is the latest move to limit Chinese activity in the US ahead of November’s presidential election. In the US election, President Trump has made taking a tough stance against China an important foreign policy platform.

Pompeo also said that Keith Krach, under secretary of State for economic growth, recently sent a letter to the boards of trustees of American universities alerting them to the threat posed by the Chinese Communist Party.

“These threats can take the form of illegal research funding, intellectual property theft, intimidation of foreign students, and opaque recruitment practices,” pompeo said.

Universities can make sure their investments and endowments are clean, he said, “by taking some key steps to disclose all [Chinese] companies’ investments in endowments, particularly in emerging market index funds.”

Pompeo said Tuesday that he hopes all of China’s Confucius Institute cultural centers on U.S. university campuses will be closed by the end of the year. He accused the cultural centres of recruiting “spies and collaborators”.

Last month, Pompeo called the Confucius Center, which runs dozens of Confucius Institutes in the United States, “an entity that promotes Beijing’s global propaganda and malign influence” and required it to register as a foreign mission.

The U.S. State Department announced in June that it would start treating China’s four largest media organizations as foreign embassies, calling them mouthpieces for Beijing.

In February, the U.S. State Department did the same for five other Chinese media outlets. In March, the US State Department said it would cut the number of journalists allowed to work in the US offices of major Chinese media from 160 to 100 because of Beijing’s “long history of intimidation and harassment of journalists”.

In response to the china-India conflict, Pompeo said on Wednesday that the United States wants a peaceful resolution to the conflict between India and China on their disputed Himalayan border.

Pompeo also told a State Department news conference that Washington is calling on China to hold talks with Tibet’s Buddhist spiritual leader, the Dalai Lama.

Euro falls, DOLLAR rises’ Currency Cold war ‘erupts again?

The euro remained under pressure on Wednesday. The move came a day after the euro rallied strongly and briefly breached 1.20 against the dollar for the first time since May 2018, only to be quickly replaced by a sell-off.

The exchange rate is “really important” in monetary policy, says ECB chief economist Joachim Lien.

On Wednesday, the euro fell sharply against the dollar, touching as low as 1.1821.

After eurozone inflation fell to its lowest level since the first quarter of 2016, Lane’s comments were seen as the euro’s rise has exceeded the central bank’s expectations. A stronger currency would dampen inflation, make imported goods cheaper and tighten financial conditions.

Typically, ECB officials are reluctant to talk much about exchange rates, saying only that they consider them as one of a series of factors in assessing conditions and setting policy.

“September has only just started and the G10 central bank officials’ currency talk has already started,” Viraj Patel, currency and global macro strategist at Arkera, said in a report on Wednesday. Patel warned last month that the euro’s rise was close to the ECB’s “pain threshold” and was increasingly likely to provoke a backlash from policymakers.

It is part of a broader rally that is likely to follow the dollar’s fall. The dollar has fallen sharply from a peak triggered by the march pandemic. While the dollar’s slide is seen as broadly positive for global growth, particularly in emerging markets, it also threatens the continuation of what Patel calls the “currency cold war”. Since the global financial crisis, the “currency cold war” has broken out many times.

In August, he constructed a forex strength aversion index, ranking The G10 countries according to their ability to withstand the macroeconomic costs of a stronger currency, and found that the Swiss franc and the euro were most at risk from policymakers pushing down further currency appreciation.

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