Trump admin. declines to brand China a currency manipulator

  • Trump admin. declines to brand China a currency manipulator

Trump admin. declines to brand China a currency manipulator

No major trading partner of the U.S. was named a currency manipulator in a latest Treasury report on the foreign exchange policies of these countries, though a list including six countries whose polices were deemed to require close monitoring was left unchanged.

President Donald Trump explained the decision to not label China a currency manipulator, which reversed a promise he made during the election campaign, as a function of receiving Beijing's help in reining in North Korea.

The department also kept China, Japan, South Korea, Germany and Switzerland on the list.

In its exchange rate report to Congress, the Treasury said despite China's large trade surplus with the United States, it was not acting improperly to depress the value of its currency.

The Treasury also warned that it will scrutinize China's trade and currency practices very closely and called for faster opening of China's economy to U.S. goods and services and a shift away from exports to more domestic consumption. In a statement, the Treasury department said the findings and recommendations of the report are meant to combat "potentially unfair currency practices" and support the growth of free and fair trade. When will this administration stop blaming others and start acting like they know what the job of president of the U.S.is about?

China was the last nation to be named a currency manipulator by the US.

According to the central bank, Taiwan only met one of the three criteria in the latest report as Taipei still enjoyed a large current account surplus, but did not meet the criterion which accused a trading partner of persistent one-sided currency intervention.

—Abandoned his vow to label China a currency manipulator.

During the 2016 USA election campaign, Trump repeatedly promised to declare China a currency manipulator.

In an interview with the Associated Press, North Korea's vice foreign minister specifically mentioned Trump's tweets have contributed to the rising tensions.

Also, Seoul's financial authorities intervened on the foreign exchange market throughout 2016 in order to ease a sharp depreciation of the local currency, selling $6.6 billion over the on-year period.

Why would I call China a currency manipulator when they are working with us on the North Korean problem?

"The important message is that the Chinese and the North Koreans used to think they had the second Barack Obama administration figured out; now, they can not make that assumption any more".

China continues to pursue a wide array of policies that limit market access for imported goods and services, and maintains a restrictive investment regime which adversely affects foreign investors, it said.

While China has been criticized for years by other countries for its heavy-handed efforts to keep the yuan undervalued, Beijing has lately been doing the opposite, by trying to prop up its currency. "The fact that that has been going on for so long is emblematic of the imbalance in the way we negotiate and deal with each other", said James McGregor, Chairman of APCO Worldwide in Greater China.