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Steven Mnuchin: China does not manipulate its currency

Steven Mnuchin

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The US President Donald Trump had defined China as a “currency manipulator”, stating that the country deliberately kept the yuan’s weak exchange rate to improve the competitiveness of its exports. The speculation that the US Treasury Department will confirm these claims this week, however, proved to be untrue.

China’s policies still cause “particular concern”, said the Finance Ministry. The lack of transparency in Beijing and the recent weakness of the yuan continue to pose serious challenges to achieving “more balanced trade”, added the US Secretary of the Treasury Steven Mnuchin in a two-year report on the monetary policy of major US trading partners.

However, the US Treasury Department does not believe that China exerts direct pressure on the price of its national currency.

The Chinese yuan has fallen to its lowest levels since 2017 against the US dollar.

The US president has already accused the growth of Chinese exports for job losses in the United States. He imposed import tariffs on Chinese goods with annual turnover of over 250 billion USD within the growing trade war between Washington and Beijing.

The fall in the price of the Chinese yuan became the occasion for a new series of criticisms from Trump to the economic policy of the Asian country.

At a meeting of the International Monetary Fund (IMF), held last week in Bali, the governor of the People’s Bank of China pointed out that Beijing is not participating in a “competitive devaluation” and does not use its currency as a “tool to tackle friction in trade”.