The Treasury has changed! No accusations that its currency "substantially undervalued"
United States Treasury published on 19th covering its main trading partners, the international economic and exchange rate policies report, thought to include China, the United States major trading partner is not manipulating its currency exchange rate to gain an unfair trade advantage, no accusations that its currency "substantially undervalued".
However, according to this report, United States Treasury Department believe the Renminbi "remains below the appropriate interim valuations". And the Treasury previously thought the RMB exchange rate "remains substantially undervalued", the wording is different.
reports that because of global economic uncertainty, volatility of capital flows increased, slowing economic growth in China, the recent trend of RMB exchange rate is difficult to assess.
United States Treasury Department's shift on August 11, people's Bank of China announced after the initiatives to improve the RMB exchange rate parity pricing mechanism, which is designed to let the market play a greater role in the Yuan exchange rate formation mechanism. United States Treasury said, is careful observation of the implementation of the new exchange-rate policy, particularly if China allowed the Yuan to rise and fall according to market forces change.
the International Monetary Fund (IMF) has welcomed the reform initiatives of the people's Bank of China, which helped China in the coming years towards a more flexible system of floating exchange rates. Earlier this year, IMF publish assessment reports, believe in the real effective exchange rate appreciated significantly in the past year, the current value can no longer be underestimated.
United States the 1988 omnibus trade and competitiveness Act, United States Treasury Department to submit to Congress every six months on the main trade partners of the international economic and exchange rate policies report, involving China, Japan, and Korea, the euro area and the United Kingdom, and Brazil, and Canada and other economies, these economies accounted for United States foreign trade total of three-fourths. In reports submitted prior to the Obama administration, not to name China as a currency Manipulator.