Treasury: China Not a Currency Manipulator

The U.S. Treasury, in a report mandated by Congress, once again declined to say that China—or any other major trading partner—meets its definition of being a currency manipulator. The report did say that China ought to have “greater exchange-rate flexibility” but noted that in the last two and half years, China’s currency, the renminbi, had appreciated by more than 12. The report also said that the renminbi was “significantly undervalued” and that “further appreciation of the [renminbi] against the dollar … is warranted.”