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Home / World / The Ministry of Finance will not call China a currency manipulator

The Ministry of Finance will not call China a currency manipulator



Over the past six months, the yuan has fallen more than 9% against the US dollar. And there are signs that the country's currency may continue to fall to 7 yuan, a threshold not exceeded since the 2008 financial crisis.

The devaluation of the yuan is due to a trade war between Washington and Beijing and Trump's allegations that China deliberately devalues ​​its currency – allegations that Beijing has repeatedly denied.

Nonetheless, the Ministry of Finance found "limited" signs in its twice-yearly report on foreign exchange, and China's People's Bank actively devalued its currency.

China's lack of transparency about its currency and the recent weakness of the yuan are "a particular concern" for the United States, Finance Minister Steven Mnuchin said in a statement, noting that the two issues "represent a fairer and more balanced trade. "

Mnuchin said the US government will continue to monitor China's currency and continue ongoing talks with the Asian nation's central bank.

In its report, the US government noted that the recent depreciation of the yuan would likely worsen "China's already large $ 390 billion bilateral trade surplus with the United States in the last four quarters through June 201

8.

" It is in the interest of China to take action that would reduce bilateral trade imbalances, "the report warned." The Trump government has included monetary issues in its negotiations on on-off trading with Beijing. "

" We want to make sure that we are not making any profits on trade issues, but only on monetary issues, "Mnuchin said in an interview with CNN on the sidelines of the annual meeting of the International Monetary Fund in Bali, Indonesia

The currency has fallen in part due to fears that the Chinese trade war A weaker yuan helps to reduce the impact of the economy Customs duties by making Chinese exports cheaper.

The Trump government has charged new tariffs on Chinese goods worth hundreds of billions of dollars. It seeks to gain a lead by putting pressure on China as it faces slower economic growth and a sharp decline in the country's stock markets.

China has beaten tariffs on a much smaller range of American products because it far less buys the United States than it sells to it.

The United States also put five other trading partners in sight: Japan, Korea, Germany, Switzerland and India.

Presidents have often used the bi – annual monetary report as. Emagazine.credit-suisse.com/app/art … = 157 & lang = DE The diplomatic instrument that deals with countries that are considered monetary policies that affect jobs and Degrading US Economic Growth

The United States has not designated a country a currency manipulator since it marked China in the early 1990s under President Bill Clinton. The naming of a country does not lead immediately to sanctions, but is perceived by other governments as a provocation.


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