The US Treasury Department said China is not manipulating its currency under US law, although it considered the renminbi undervalued and in need of further appreciation, Bloomberg reported. China “has substantially reduced the level of official intervention in exchange markets since the third quarter of last year,” the treasury said in a statement provided together with its twice-yearly currency report to Congress on Tuesday. The yuan is up 12.6% in real terms and 9.3% in nominal terms against the dollar from June 2010, according to the Treasury. China has taken “steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange-rate regime,” the treasury said. The department said it would continue to monitor the value of the yuan and put pressure on China to change its currency controls to improve transparency and allow for more flexibility in the exchange rate.
Categories