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Law & Regulation

Regulator denies currency manipulation

China's foreign exchange regulator denied allegations hat it manipulated the value of the yuan. In a commentary published in the state-run China Daily, Guo Shuqing, director of the State Administration of Foreign Exchange, denied manipulating the value of China's currency to give its exports an unfair advantage. The issue is a politically sensitive one with some of China's trading partners. Led by the United States, they have been pressing for China to ease its tight controls on the currency. Washington says the yuan, which has been pegged to the dollar for more than a decade, is undervalued by up to 40%. Critics say this amounts to manipulating the yuan to hold down its value and make Chinese exports unfairly cheap.

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