U.S. shies away from calling China a currency manipulator

Remigio Civitarese
Ottobre 18, 2018

Beijing's lack of transparency and the recent weakness of the yuan continued to pose major challenges to achieving "more balanced trade", Treasury Secretary Steven Mnuchin said in a report on the foreign exchange policies of the United States' major trading partners that is published twice a year. The reports are meant to address concerns that foreign countries could depress their currencies to hurt US businesses by making their exports less expensive.

The United States on Wednesday (Oct 17) again declined to call China a currency manipulator but said the yuan's fall and Beijing's exchange practices were of "particular concern".

Washington has long argued Beijing keeps its currency artificially low to make its exports more competitive.

However, the Treasury did not find that China was directly intervening to undermine the currency's value.

Still, as USA interest rates have risen, the U.S. dollar has strengthened further, which makes American exports more expensive.

US Dollar and China Yuan notes are seen in this picture illustration June 2, 2017.

Labelling China a manipulator would be a fresh sign of confrontation from Washington but any actual repercussions would be gradual.

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