NRI Dunia
Think Outside The Box

China currency manipulator: US

The US has officially labelled China a “currency manipulator,” accusing it of using the yuan to gain “unfair competitive advantage,” a charge dismissed by Beijing as “wayward unilateralism and protectionist”, further escalating the tense trade war between the world’s two largest economies.

The Trump administration’s move came as Beijing allowed its currency to fall below the politically sensitive level of seven yuan to the US dollar on Monday for the first time in 11 years and Chinese firms have reportedly stopped buying US farm produce.

During the presidential elections, Donald Trump had promised to label China as a currency manipulator, but the Department of Treasury kept the country on its watch-list, declining to take the final step. On Monday, the Treasury Department said: “Secretary (Steven) Mnuchin, under the auspices of President Trump, has today determined that China is a ‘Currency Manipulator’.” Mnuchin, after this decision, will engage with the IMF to eliminate the “unfair competitive advantage created by China’s latest actions”, it said.

Trade war intensifies

The Trump administration’s move came as Beijing allowed its currency to fall below the politically sensitive level of seven yuan to the US dollar on Monday for the first time in 11 years

China has dismissed the charge, terming the move “wayward unilateralism and protectionist”, further escalating the tense trade war between the two largest economies.