got to love it when one of the "summary" bots completely misses your argument ... if this is what AI can do I am not impressed.

A reminder that the dollar wasn't the only currency to depreciate in the month of August ... When the BIS data comes out, there will be a further fall in China's real effective exchange rate (inflation differentials now matter, so CFETS on its own misleads a bit)

Thread on a new blog -- One perhaps of greatest interest to balance of payments nerds It helps document why I suspect China's reported investment income is understated (China is at odds with other surplus countries)

why swaps? “The advantages of using the state banks for backdoor intervention are fairly obvious. It disguises the state's role in the market, and it avoids the scrutiny that comes with direct PBOC intervention – both public scrutiny and international scrutiny.” me

Bloomberg did an excellent job of summarizing my critique of China's balance of payments data, and thus why I don't buy the large reported fall in China's current account data over the last two years. bloomberg.com/news/articles/…