US Treasury officially labels China a “currency manipulator”
- The US Treasury has officially labeled China a “currency manipulator”. Currency manipulation is a situation when a country intentionally influences the exchange rate between its currency and the US dollar to gain “unfair competitive advantage in international trade”.
- This comes after the People’s Bank of China (Chinese central bank) allowed the renminbi to fall below a key threshold, marking a dramatic escalation in the trade war between the two economic powers.
What happens when a country is designated as “currency manipulator”?
When the US Treasury labels a country as a currency manipulator, the next step would normally be for negotiations to begin between the two countries.
Points to remember:
1. Recently the US treasury had labeled which country as a “currency manipulator”?