Financial Protectionism raises fears

Given the severe economic crisis, protectionism is on the rise worldwide. In the U.S., on a buy-American “clause discussed, and countries like Russia to increase import duties or levy new taxes. But even with fiscal resources and the rescue of the banks, governments are trying out new lines of defense to build.

Monetary policy has been used traditionally like. It is expected at the next meeting of the seven leading industrialized countries (G7) on 13 and 14 February a topic. Rare were the movements in the currency markets as large as at present. Two currencies are, according to the experts in the heart of the debate: the Chinese renminbi and the Japanese yen. While the renminbi is considered too weak, complains that the Japanese industry over the rise of the yen.

“It will probably be discussion on the renminbi. This could be the basis for further discussions in the future,” said Makoto Utsumi, a former top advisor in the Japanese currency Ministry of Finance.

The rate of the renminbi is currently the tensions between the U.S. and China to grow again. The renminbi appreciated since July 2005 by more than 20 percent against the dollar. For some weeks he is in a fixed band for greenback.

Several economists even say that Beijing has a fixed dollar bond was returned. The presumed background: The People’s Republic wants to export its domestic industry, in which the renminbi artificially weakens. The new U.S. Treasury Secretary Timothy Geithner accused China of “manipulating” the exchange rate.

Chinese Prime Minister Wen Jiabao defended itself against the allegations. However, he refused to devalue not explicitly, but only said that a stable exchange rate was in the interest of China.

“A devaluation of the renminbi against the dollar would be in the interest of Chinese exporters. If our interpretation of the China policy of the U.S. administration is true, it would not be enforceable,” said Commerzbank expert You-Na Park on Wednesday quoted the dollar at 6, 83 yuan.