(IndustryWeek – AFP)
The U.S. Treasury said Wednesday that China does not manipulate its currency, but pushed Beijing to do more to focus on domestic demand – not exports – to drive economic growth.
In a twice-yearly report to Congress, which would set sanctions on any country officially branded a “manipulator,” the Treasury said the yuan, or renminbi (RMB), had “partially recovered” from a sharp plunge earlier in the year and had appreciated by 1.9% since late April.
However, the yuan remained “significantly undervalued,” the Treasury said, reiterating the description it has long used in pressing China to allow its currency to move toward a market-determined exchange rate. Read more here.