China: Currency Manipulator No More

The US Treasury avoided labeling China a currency manipulator in a much delayed report to Congress but maintained that the yuan was undervalued.Three weeks after the Chinese central bank vowed to loosen its currency controls amid mounting international pressure, the US Treasury said the yuan "remains undervalued," stopping short of branding Beijing a manipulator."What matters is how far and how fast the renminbi (yuan) appreciates," Treasury Secretary Timothy Geithner said in the semiannual report to Congress.

The US Treasury avoided labeling China a currency manipulator in a much delayed report to Congress but maintained that the yuan was undervalued.Three weeks after the Chinese central bank vowed to loosen its currency controls amid mounting international pressure, the US Treasury said the yuan "remains undervalued," stopping short of branding Beijing a manipulator."What matters is how far and how fast the renminbi (yuan) appreciates," Treasury Secretary Timothy Geithner said in the semiannual report to Congress.

…at least not according to the US Treasury (see the Treasury’s Interim Report on Exchange Rate Policy). According to the Treasury’s report:

WASHINGTON -- "The Obama administration may be getting tougher with China on trade on behalf of U.S. producers seeking to reduce foreign competition, but its approach in dealing with Beijing on the thorny currency issue remains patient diplomacy, especially because China's currency policy does generate huge cost advantages for American consumers and businesses purchasing their products.

The US Treasury avoided labeling China a currency manipulator in a key report to Congress Thursday but maintained that the yuan was undervalued.Three weeks after the Chinese central bank vowed to loosen its currency controls amid mounting international pressure, the Treasury said the yuan "remains undervalued."