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- China not currency manipulator
Date: 21-Dec-2007 Sources: (Shenzhen Daily)
THE U.S. Government declined to name China a currency 'manipulator?but said in a report Thursday that the yuan remained 'severely undervalued?against the U.S. dollar.
The U.S. Treasury, in a semiannual report to the U.S. Congress, maintained its position that China should quicken its pace of economic reforms that would help lift the yuan's value, but said there was no evidence of manipulation under U.S. law.
'Treasury concluded that neither China nor any other major trading partner of the United States met the requirements for designation as a manipulator of their currency,'the report said.
The conclusions allowed China to avoid a process that could trigger sanctions under U.S. law.
The report acknowledged that the yuan, also known as the renminbi, appreciated against the dollar by 12.1 percent since a new currency regime was imposed in July 2005 that allowed it to trade in a wider range.
The Chinese currency rose by 2.5 percent in the first half of 2007 and another 3.2 percent in the second half through Dec. 11 this year. Against a broader range of currencies, the gain has been 3.8 percent since 2005.
The U.S. Treasury has never used the report to accuse China of unfair exchange rate policies, despite criticism from the U.S. Congress.
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