The US expects China will allow its currency to trade more freely in the future and says China has already done enough to avoid being branded a currency manipulator, The South China Morning Post reported, citing a top US Treasury Department official. Beijing last month said it was abandoning a currency regime which had pegged the yuan at about 8.28 to the US dollar for a decade and allowed it to appreciate 2.1%. The following week, the central bank said the change was not the start of a series of upward movements. Tim Adams, Undersecretary for International Affairs, said the US Treasury had warned in its April report that China would likely be targeted as a currency manipulator in its October review unless there was a substantial change. China is allowing more than 130 domestic and foreign banks to trade forward and swap contracts, which protect them against swings in the yuan, Bloomberg News reported separately.
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