OK, I think the beat-up on NZ this week over China & 5-eyes has been completely out of proportion. All it tells us is that Western observers are obsessed with performative, and are missing the substance. The 'weak link of the month' should go to Yellen, not Ardern .. . 1/3

China has been ramping up FX intervention through quasi-official channels, while keeping official FX intervention understated. The US Treasury FX report acknowledged this, but gave them a free pass, even though quasi + official FX intervention is hitting all-time highs 2/3

The real CNY against the USD is no higher than it was in 1985. China has tied itself into the USD system, while using the CNY to seek a competitive advantage, and the response of Yellen's Treasury is to say 'fine'. This is the issue of the moment, not NZ's semantics