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How Do We Know a Country Has Manipulated Its Currency?
The International Monetary Foundation (IMF) and the World Trade Organization (WTO) have provisions prohibiting the use of currency manipulation to gain trade advantages. Based on IMF principles, a three-part test can be used to clearly identify a currency manipulator within existing or future trade agreements:
Did Country X have more exports than imports (an account surplus) over a set six-month period?
Did Country X add to its foreign exchange reserves over that same six-month period?
Are Country X’s foreign exchange reserves more than sufficient (i.e. over three months’ normal imports)?
http://www.americanautocouncil.org/currency-manipulation-101