The administration of US President Barack Obama is raising concern about the value of China’s currency, but is declining, as in recent years, to accuse Beijing of manipulating it.
The US Department of the Treasury said the yuan has appreciated, but not as fast or as much as needed. It reached that conclusion in its twice-yearly report on whether nations are manipulating currencies to gain trade advantages.
China has announced a modest easing of exchange-rate controls, which have been criticized by Washington and other nations. The action last month was among a series of reform initiatives aimed at making its slowing economy more efficient.
The US Department of the Treasury report said recent movements of the yuan “would raise particularly serious concerns” if they are a prelude to renewed resistance by the Chinese government to letting the currency strengthen. It said it would continue to closely monitor China’s currency policy and “will press for further policy changes” that would let the rate be determined by the market.
The report also cautioned that the South Korean government should only intervene in the currency market during infrequent episodes of “disorderly market conditions” and should make its interventions more transparent.