US senators speaking before a Senate Finance Committee hearing have criticized China’s efforts to increase the flexibility of the renminbi’s exchange rate, Reuters reported. The criticisms were sparked by the renminbi’s relative stability against the US dollar since the People’s Bank of China (PBoC) announced a more flexible exchange rate policy on the weekend. As of Wednesday, the renminbi had only risen 0.2% against the US dollar despite some estimates that it is as much as 20% undervalued. Democratic Senator Charles Schumer said he would proceed with a proposed bill that would require the US Commerce Department to treat undervalued currencies as unfair trade subsidies. The PBoC said that it would increase flexibility while keeping the renminbi’s exchange rate "basically stable."
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