US spares China from yuan-manipulator label amid trade war

WASHINGTON (Oct 18): The Treasury Department stopped short of declaring China a currency manipulator in its semi-annual report on foreign-exchange rates, averting an escalation of a trade war while serving notice that the US will closely watch the yuan after its recent slide.

“Of particular concern are China’s lack of currency transparency and the recent weakness in its currency,” Treasury Secretary Steven Mnuchin said in a statement. “We will continue to monitor and review China’s currency practices, including through ongoing discussions with the People’s Bank of China.”

While Treasury said in the report that direct intervention by China’s central bank has recently been “limited,” the US is “deeply disappointed” that the nation doesn’t disclose its foreign exchange intervention.

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