The US Treasury Department excluded China from the list of currency manipulators a few days before senior officials of the two largest economies in the world should sign a preliminary trade deal, Reuters reported.
The US Treasury, in the midst of trade and economic tensions with China, announced in early August that China was manipulating its currency amid the renminbi falling to a minimum of more over ten years.
According to the agency’s latest report, as part of the first phase of the trade transaction, China made obligations to refrain from competitive devaluation, and agreed to release relevant data on the exchange rate and balance of payments.
The report said that the Chinese yuan after falling to 7.18 against the dollar in early September, strengthened in October and is currently trading at around 6.93 yuan per dollar.
“In this context, Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the report said. However, according to the document, China should take decisive measures to avoid maintaining a stable low exchange rate and to allow greater market openness to strengthen long-term growth prospects.
The Chinese MFA said that Beijing will maintain overall stability of the national currency. In August, the central bank of China denied intervention aimed at weakening the yuan, and considered Washington’s decision a significant violation of international rules.