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Friday, April 12, 2013

US Treasury Dept: China is Not Manipulating Currency

The United States has determined that China is not manipulating the value of its currency, which has been a major complaint by the Obama administration.

The Treasury Department said in its twice yearly report to Congress Friday that China has taken a series of steps to liberalize currency controls and peg the value of the yuan to a more market-determined exchange rate.

But the report also says the yuan is still significantly undervalued and that the Chinese economy, as well as others in Asia, need a more flexible exchange rate and transparency.

The Obama administration and many in Congress have accused China of deliberately manipulating the value of the yuan against the U.S. dollar. This makes U.S. goods too expensive on the world markets compared to Chinese exports.

China has always denied currency manipulating.

The Treasury report also calls on Japan to refrain from what it calls "competitive devaluation" of its currency.

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