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Treasury Says It Again: China Does Not Manipulate Currency

Posted October 17, 2014

Under Economic Issues, International Trade Issues

(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.