China has consistently been considered a currency and manipulator by several administrations in the United States. While this may be true, what China has been doing recently can hardly be called simple manipulation of the currency. China has been attempting to dedollarize as quickly and quietly as possible.
Part of this dedollarization has been to get into agreements with other countries to exchange the yuan with that country’s currency. This effectively removes the United States dollar from any transactions by bypassing the swift system. The latest agreement has been with the Bank of Israel, which is the Israeli central bank. The Israeli central bank has agreed to keep Chinese yuan as a part of its currency holdings in reserve for the first time ever. At the same time the Bank of Israel is planning to reduce its holdings of European Union euros and the United States dollar.