Mnuchin: Trump's Tweets on Russia, China Currencies were 'Warning Shot'

US President Donald Trump

US President Donald Trump

In the case of China, the accusation is outdated.China has allowed the value of its currency to rise in the a year ago - to 6.3 yuan to the dollar from 6.9 yuan to the dollar last April. Instead, the report found that China's currency had recently moved in a direction that should benefit US exporters.

On April 13, 2018, the Treasury Department released its biannual report to Congress on the Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, which declined to formally label China a currency manipulator under the Omnibus Trade and Competitiveness Act of 1988 (the "1988 Act"). But the facts appear to undermine his claim, particularly regarding China's currency, the yuan.

As such, the uncertainty over trade and currency policy will continue to be a notable obstacle to any turnaround for the US Dollar argues Halpenny. That is the opposite of a currency devaluation game.

Russian lawmakers, in response, have submitted a wide-ranging bill that could freeze crucial exports to the United States.

The United States has not formally labeled China a "currency manipulator", a move that triggers a process of consultation between both countries and could heighten tensions.

Ministry spokeswoman Hua Chunying made the comment at a regular briefing in Beijing.

Since Treasury's first report in 1988, China has been named a currency manipulator only briefly between 1992 and 1994.

But Trump's relationship with China has worsened markedly in the past three months as he has taken a more adversarial approach to trade policy.

India ran a goods trade surplus of $23 billion in 2017 with the United States, far less than China's $375 billion goods trade surplus.

After a flub in January when Mnuchin made off-the-cuff remarks that a weaker dollar had short-term benefits for the USA economy, he has consistently said that his dollar policy is not aimed at talking it down.

The President's claims go against the conclusions of a Treasury Department report released last week that did not name any of the US' 12 largest trading partners - a list that excludes Russian Federation - as being a currency manipulator.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.