United States abandon the Renminbi "substantially undervalued" judge: not currency manipulator
United States Treasury Department gave up on Chinese renminbi "substantially undervalued" the judge, but said the long-term appreciation of the renminbi is still there, and China needs to let the Yuan strengthen. According to Bloomberg, United States Treasury Department on Monday said in its semiannual report on foreign exchange policy, Renminbi remained "below the appropriate medium-term value level. "The report said, in recent years to promote the Renminbi" core elements "remain, such as the large and growing current account surpluses, net inflows of foreign direct investment, etc.
Nevertheless, the United States Treasury no longer described the Renminbi "substantially undervalued", but gave up since May 2012 has been the language used in the report. United States Treasury Department also acknowledged that market forces to bring downward pressure on the currency, but said the trend was temporary. However, the International Monetary Fund in May, that the Yuan "is no longer undervalued."
This is the people's Bank of China August 11 the unexpected devaluation of the Renminbi, lead appeared after the biggest two-day decline since 1994, United States Obama administration first released report on foreign exchange policy. Reports show that United States over China's currency policy and soften their stand. China's Central Bank said earlier it would allow market forces to play a greater role in the daily setting the central parity of RMB.
United States Treasury Department says China's exchange-rate mechanism: test will be if China allowed the Yuan to rise like a downward pressure on flexible response to pressure. United States Treasury says, is the key for China to keep its promises, only in "disorderly market" only intervention in the foreign exchange market.
United States, China vigorously intervened in the last 3 months, invested about $ 229 billion to prevent the devaluation of the Renminbi. Treasury said that China should regularly disclose its currency intervention.