US Treasury Declines to Label China a Currency Manipulator, Warns on Practices

While the semiannual report stopped short of labelling China a currency manipulator, it carried an implicit warning to Beijing in that much of the text focuses on the importance of keeping a close watch on the yuan to make sure that China is not depreciating its currency to alleviate trade war pains.

A bank employee uses a money counting machine to count out 100 yuan (14.6 USD) notes at a bank in Shanghai on August 8, 2018. - A rally in Asian markets stuttered on August 8, with early gains pared as the US-China trade row erodes investor confidence. But the yuan got some support after a news report said the Chinese central bank had emphasised the need for currency stability to the country's lenders as it looks to halt a slide in recent months. (Photo by Johannes EISELE / AFP) Photo credit should read JOHANNES EISELE/AFP/Getty Images

The U.S. Treasury Department, in a report on foreign exchange-rate practices, stopped short of labeling China a currency manipulator, while offering an implicit warning to Beijing on the importance of keeping a close watch to make sure the yuan isn’t being depreciated to alleviate trade-war pains.

The department delivered its report to Congress on Oct. 17; it devotes 34 pages to Beijing’s policies and practices.