US Treasury Department, formally determined China as currency manipulator yesterday, for the first time since 1994, after USD/CNH surged through the psychologically important 7 handle. In the statement, US said under Section 3004 of the Omnibus Trade and Competitiveness Act of 1988 , the Treasury Secretary Steven Mnuchin has “determined that China is a Currency Manipulator.”And, He will “engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions,”
It’s pointed out that “the Chinese authorities have acknowledged that they have ample control over the RMB exchange rate.” In particular, US Treasury referred to PBoC statement that noted it “has accumulated rich experience and policy tools, and will continue to innovate and enrich the control toolbox, and take necessary and targeted measures against the positive feedback behavior that may occur in the foreign exchange market.”US said “this is an open acknowledgement by the PBOC that it has extensive experience manipulating its currency and remains prepared to do so on an ongoing basis.
