US Again Declines to Label China as a Currency Manipulator

The United States on Tuesday declined to name China as a currency manipulator although it remained critical of the Chinese government’s economic policies ahead of a planned visit to Beijing by President Donald Trump.



The semi-annual U.S. Treasury currency report said no countries deserved the currency manipulator label, but it kept China on a currency “monitoring list” despite a fall in China’s global current account surplus since 2016. China’s currency, the renminbi or yuan, also has strengthened sharply against the dollar this year, reversing three straight years of weakening.

The Treasury cited China’s unusually large, bilateral trade surplus with the United States.

“Treasury remains concerned by the lack of progress made in reducing the bilateral trade surplus,” the department said in the report. “China continues to pursue a wide array of policies that limit market access for imported goods and services.”

The U.S.-China trade deficit stood at $34.9 billion in August, near a two-year high.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza