US Treasury: China is not a currency manipulator

The US Treasury said China does not meet the criteria to be labeled as a currency manipulator in a semi-annual report the agency issued Tuesday, stating instead that renminbi appreciation has been “insufficient,” Reuters reported. “Treasury will closely monitor the pace of appreciation and press for policy changes that yield greater exchange rate flexibility, a level playing field and a sustained shift to domestic demand-led growth,” the report said. The decision not to label China as a currency manipulator comes in spite of increased pressure from the Obama administration on China to allow the renminbi to appreciate and rising rhetoric from lawmakers that China is gaining an unfair advantage. The value of the renminbi against the dollar has risen 4% this year, but the Peterson Institute for International Economics estimates the currency is still undervalued by 24%.