US says Chinese yuan still undervalued despite rise
The US Treasury said Wednesday that the Chinese yuan remains undervalued despite its significant appreciation this year and called on Beijing to disclose more about its market intervention.
New York: The US Treasury said Wednesday that the Chinese yuan remains undervalued despite its significant appreciation this year and called on Beijing to disclose more about its market intervention.
In a semi-annual report to Congress, the Treasury stopped short of officially labeling China a currency manipulator, a designation that could spark US trade sanctions.
The yuan, or renminbi (RMB), "is appreciating, but not as fast or by as much as is needed," the Treasury said.
"In line with the practice of most other G20 nations, China should disclose foreign exchange market intervention regularly to increase the credibility of its monetary framework and to promote exchange rate and financial market transparency," it said.
The Treasury also singled out Japan and South Korea for undervalued currencies.
But it acknowledged that Tokyo has not intervened in foreign exchange markets for almost two years, and that the yen`s fall came from the government`s stimulus.
As for the Korean won, it said market participants estimate Seoul had intervened in early 2013 to hold down the currency as the yen weakened, and continued to intervene through the middle of the year.
"We will continue to encourage Korean authorities to limit foreign exchange intervention to the exceptional circumstances of disorderly market conditions," it said.