U.S. declines to label China a currency manipulator

[alp227]

Source: LA Times

The Obama administration may be getting tougher with China on trade, but its approach in dealing with Beijing on the thorny currency issue remains patient diplomacy.

The Treasury Department, in its semiannual report Friday on exchange-rate policies, once again refrained from labeling China a currency manipulator -- an accusation that would embarrass Beijing and trigger negotiations and possibly even lead to U.S. sanctions.

The Treasury report made plain that U.S. officials believe that China’s currency, the yuan, remains “significantly undervalued.” An artificially cheaper yuan gives Chinese exporters an extra price advantage in selling their goods in the U.S. But Treasury still declined to cite China, saying that the Chinese have made progress in correcting currency and related imbalances and also have assured the U.S. that they would move more quickly to adopt a more flexible, market-based exchange-rate system.

Treasury officials didn’t say how much they think the yuan remains undervalued against the dollar and other major currencies, but their report cited estimates of 3% to 23% from the International Monetary Fund in July 2011.

Read more: http://www.latimes.com/business/money/la-fi-mo-china-currency-20120525,0,584143.story

[Egalitarian Thug]

1. This is important stuff that directly effects our daily lives, yet so few know or care about it.

I suppose this is how we ended up so thoroughly screwed.
K&R