U.S. niege to label China currency manipulator

The Obama administration declined to label China currency manipulator, but said that China's currency is still significantly undervalued s. The decision was made in a report twice a year Treasuries if any nation is manipulating their currencies to gain trade advantages.

The report said China has allowed its currency, the renminbi, and rise in value by 10 percent against the dollar since June 2010 and even more when inflation is taken into account. But the report said the currency remains undervalued and appreciation is needed.

The United States will also closely monitor the policies of Japan s currency, the report said. S Bank of Japan has just launched a new effort to boost the Japanese economy. That effort has weakened the value of the Japanese yen and the U.S. could expand trade and Japan gap.US manufacturers contend that China is manipulating its currency to gain trade advantages. 

A weaker renminbi makes Chinese products cheaper for American consumers and U.S. goods more expensive in China.The Obama administration has now declined to China as a manipulator of nine consecutive reports. 

It has been argued that it was more likely that the United States will advance economic issues through negotiation rather than confrontation. Naming China as a currency manipulator would lead to negotiations that could eventually lead to economic sanctions of the U.S. against China.

In March, Jacob Lew traveled to Beijing, his first trip abroad since becoming Treasury Secretary. During the trip, he referred to the need for China to do more to allow its currency to rise in value. He also referred to a number of other economic contentious issues between the two world s largest economic powers, including a demand from Washington for China to do more to end threats to U.S. cybersecurity Late U.S. companies.

The appointed a country as a currency manipulator was in 1994 during the Clinton administration made that accusation against China. On Japan, the report noted that the Japanese yen has lost value against the dollar by 12 , 5 percent this year alone. 

That s occurred when the Japanese government and its central bank has committed to an aggressive policy to drive interest rates lower to reinforce the Japanese economy. 

The U.S. government said he will continue to press Japan to use its economic policy to boost domestic consumer demand, and not as a trade weapon.