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19:21, 18-Oct-2017
US Treasury says no major trading partner manipulates currency
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No major trading partners of the US, including China, manipulated their currencies, US Treasury Department said on Tuesday in a report.
The Treasury Department concluded that none of its major trading partners met the standard of currency manipulation in the first half of 2017, according to its semi-annual report to Congress on International Economic and Exchange Rate Policies.
But the report put five countries -- China, Germany, Japan, South Korea and Switzerland -- on its "monitoring list," which means their foreign exchange policies bear close monitoring.
The Treasury Department said it places "significant importance" on China adhering to its G20 commitments to refraining from engaging in competitive devaluation and not to target China's exchange rate for competitive purposes.
The Treasury Department also said China's efforts to prevent a sudden depreciation of its currency had helped the US and the global economy.
China's recent intervention in foreign exchange markets and tightened capital controls "have likely prevented a disorderly currency depreciation" that would have negative consequences for the US, China, and the global economy, the report said.
US President Donald Trump said earlier this year that China had not been manipulating its currency for months, a sharp reversal from his campaign rhetoric.
The International Monetary Fund also said in August that Chinese currency yuan (RMB) remains broadly in line with fundamentals.
Source(s): Xinhua News Agency