Administration Declines to Cite China for Currency Manipulation

[WestVirginiaRebel]

Fox News:

WASHINGTON -- The Obama administration on Friday declined to cite China for manipulating its currency to gain trade advantages against the United States.

The Treasury Department noted that China last June said it would begin allowing its currency to rise against the dollar. The agency said the pace of revaluation has been too slow since and more rapid appreciation is needed.

Treasury's finding came in a report it must submit to Congress every six months determining whether other countries are manipulating their currencies. American manufacturers have been pushing for China to be cited. That could result in penalty tariffs being imposed on Chinese imports.

In refusing to cite China, Treasury said Chinese President Hu Jintao had assured President Obama during a visit to Washington last month that China would intensify its efforts to "further enhance exchange rate stability."

Treasury said that the pace of revaluation had accelerated in recent months and the movement was being aided by different rates of inflation in the two countries. The report said that the Chinese currency, the renminbi, had risen in value by 3.7 percent against the dollar since China announced in June that it would resume allowing the currency to appreciate.
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Well, they don't want to get the bank mad at them...

[ErnstBlofeld]

The undervalued currency is blamed for driving up China's huge trade surpluses against the United States while at the same time raising the prices of U.S. exports. It is slowing down our recovery from the recession.