The eagerly awaited semi-annual Treasury report on exchange rates has
finally been released, and the results may have serious implications.
Many members of Congress, among others, had been hoping the US would use
the report to officially label China a currency manipulator, which
would justify the use of trade sanctions and other economic penalties.
Instead, while admitting it was concerned about widening economic
balances engendered by China’s artificially low exchange rate, the
Treasury Department stopped short of formally
accusing China of currency
manipulation. The report may provide the impetus to propel a bill,
which would punish China economically, through Congress. The New York
Times reports:
They [Senators Schumer and Graham] can be expected to
challenge the Treasury report’s conclusion, but they have also kept
their bill calling for tariffs on hold while watching how China
responds.
Read More:
China Not Manipulating Currency, U.S. Says
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