Trump admin. declines to brand China a currency manipulator
Apr 17 2017
The department, however, concluded that no major USA trading partner is manipulating its currency to gain an unfair trade advantage, suggesting President Donald Trump has backed away from his campaign pledge to label China a currency manipulator.
On the list of special monitoring of currency practices, countries like China, Japan, South Korea & Taiwan are on top.
Treasury Secretary Steven Mnuchin said ensuring a level playing field for USA businesses is an "essential component of this administration's strategy".
Trump acknowledged as much this week in a Wall Street Journal interview. The Treasury notified Seoul that it was closely monitoring its currency intervention practices. The US Department of Treasury yesterday concluded that no major trading partner of the US met the Congressional standards for currency manipulation in the second half of 2016.
The Treasury left the criteria for manipulation unchanged at having a trade surplus with the US above $20 billion; having a current-account surplus amounting to more than 3 percent of gross domestic product; repeated currency depreciating by buying foreign assets equivalent to 2 percent of output over the year.
"It shouldn't be a zero-sum game", he said at the 6th Columbia China Prospects Conference that opened on Friday.
Just as the Trump administration attempts to recruit China's help in dealing with North Korea, McMaster also addressed US-Russian relations and their impact on the US policy toward Syria's years-long civil war. We have submarines, very powerful, far more powerful than the aircraft carrier, that I can tell you, ' Trump continued. He now says of the bank, which supports US exports, "Actually, it's a very good thing".
In order for a country to be labeled a currency manipulator by the US Treasury, the treasury determines three criteria: the size of the country's current trade surplus with the US; the size of the country's trade surplus with the rest of the world; and the number of times the country intervened in currency markets in recent months.
He has toned down his rhetoric as the Chinese government aggressively tries to strengthen the yuan and promote the currency's acceptance internationally. U.S. officials said the administration settled on a policy to emphasise increasing pressure on Pyongyang with the help of China, North Korea's only major ally, instead of military options or trying to overthrow Kim Jong-un's regime. "China steals our intellectual property, doesn't let American companies compete in China, and has manipulated their currency causing the loss of millions of jobs", said Senate Minority Leader Charles E Schumer.
Trump did say he thought the dollar was "getting too strong" - a comment that sent the US currency falling, though it subsequently rebounded.
Trump has repeatedly said he will prevent Pyongyang from developing a nuclear-tipped ballistic missile capable of reaching the mainland United States.
Abandoned his vow to label China a currency manipulator.