Sunday, February 6, 2011

China did not manipulate currency in 2010: US

CHINA did not manipulate its currency to gain an unfair trade advantage in 2010, but progress toward allowing it to appreciate was 'insufficient', the US Treasury said on Friday.
The Treasury said that China, eight other countries and the euro zone were all cleared of accusations that they manipulated exchange rates to their own benefit.

'Based on the resumption of exchange rate flexibility last June and the acceleration of the pace of real bilateral appreciation over the past few months,' China's behaviour did not qualify under the official definition of manipulation, it said in a long-delayed report to Congress.

'Treasury's view, however, is that progress thus far is insufficient and that more rapid progress is needed,' it added, pledging to 'continue to closely monitor the pace of appreciation' of the yuan by China. In addition to China, the Treasury looked at the policies of the euro zone and eight other economies: Brazil, Britain, Canada, Japan, Mexico, South Korea, Switzerland and Taiwan.

'Treasury has concluded that no major trading partner of the United States met the standards' identified by the law 'during the period covered in this report,' it said.

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