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China not a currency manipulator, says U.S.

  • The United States decided on Tuesday not to declare China as having manipulated its currency in order to gain an unfair trade advantage.

    However, the Treasury did say that China's yuan currency remains "significantly undervalued", pressing China to make further progress.

    In its semi-annual report, it said Beijing had not met criteria to be labeled a currency manipulator, which could have led to U.S. trade sanctions.

    Critics say China keeps the yuan low to keep its exports cheap.

    "The Chinese authorities have substantially reduced the level of official intervention in exchange markets since the third quarter of 2011, and China has taken a series of steps to liberalise controls on capital movements, as part of a broader plan to move to a more flexible exchange rate regime," the Treasury said.

    It also noted there was more to do and that "further appreciation" against the U.S. dollar and other major currencies was "warranted".

    Since 2005, China has had a managed currency and the yuan, which is pegged against a basket of foreign currencies, has been slowing appreciating against the U.S. dollar.

    In its report, the Treasury said the yuan had appreciated by 9.3 percent against the dollar since June 2010.