Trump Administration Refuses To Call China A Currency Manipulator
Twice a year, the U.S. Treasury Department issues a report on foreign exchange practices. Once again, like past administrations, the Trump administration decided not to use this opportunity to designate China as a currency manipulator. Instead the department said, “The increasingly non-market direction of China’s economic development poses growing risks to its major trading partners and the long-term global growth outlook … Treasury is strongly concerned by the lack of progress by China in correcting the bilateral trade imbalance.”
The department retained China, along with Germany, Japan, South Korea, Switzerland, and India, on a “monitoring” list.
In a post on Twitter the day after the Treasury Department released its report, President Trump said, “Russia and China are playing the currency devaluation game as the U.S. keeps raising interest rates.” During his presidential campaign, Donald Trump promised to label the Chinese government a currency manipulator.
As Politico’s “Morning Trade” noted the latest report is the third time the Trump administration has declined to make such an assessment.