China's central authorities have intervened and that has left fingerprints all over the money market. In buying dollars to weaken the currency, the monetary authorities put additional money into circulation. The central bank withdrew a fraction of this extra money by selling securities to the bank. This pushed down interbank interest rates, despite the central bank's withdrawal. China's intervention to limit the appreciation of its currency, the renminbi (RMB) against the dollar and other currencies has become a major source of tension with many of its trading partners, especially the United States. 

Analysts argue that China deliberately manipulates its currency to gain unfair trade advantages. China's undervalued currency has been a major factor in the large annual U.S. trade deficits with China and has contributed to widespread job losses in the United States of America. President Obama has stated that China should go ahead and move towards a market-based system for their currency. Most agree that greater currency flexibility by China would be one of several reforms that would help reduce global imbalances.