US Treasury refrained from naming China a currency manipulator in the latest “Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States” report.
In a statement, Treasury Secretary Seven Mnuchin said the department is “working vigorously to ensure that our trading partners dismantle unfair barriers that stand in the way of free, fair, and reciprocal trade.” And he singled out China as of “particular concern” due to the “lack of currency transparency and the recent weakness in its currency”. Mnuchin added that they will continue to “monitor and review” China’s currency practices.
The statement also noted that despite the lack of transparency, “Treasury estimates that direct intervention by the People’s Bank of China this year has been limited.” Though, it also warned that “recent depreciation of the renminbi will likely exacerbate China’s large bilateral trade surplus with the United States”. It placed ” significant importance” on ensuring China doesn’t engage in “competitive devaluation”.
A total of six major trading partners are put in the monitoring list, including China, Germany, India, Japan, Korea, and Switzerland.
