China
        

Society

China not manipulating currency: US Treasury

Updated: 2011-05-28 07:26

(Xinhua)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

WASHINGTON - The US Treasury Department said in a report released on Friday that China was not manipulating its currency.

"In China, since the authorities decided in June 2010 to allow the exchange rate to appreciate in response to market forces, the renminbi (RMB) has appreciated by a total of 5.1 percent against the dollar in nominal terms through the end of April 2011, or at an annual pace of approximately 6.0 percent," noted the semi-annual report on international economic and exchange rate policies.

Related readings:
China not manipulating currency: US Treasury Authorities OK currency trades
China not manipulating currency: US Treasury Add yuan to IMF currency basket
China not manipulating currency: US Treasury US, China should address currency issue 'cooperatively'

The Treasury said that as inflation in China is significantly higher than it is in the United States, the renminbi has appreciated more rapidly against the dollar on a real, inflation-adjusted basis, at a rate of around 9 percent per year.

The delayed report, which was originally scheduled to be sent to the Congress on April 15, finds "no major trading partner of the United States" manipulated its currency during the period covered in the report.

The Treasury added that it will continue to "closely monitor" the renminbi appreciation pace.

The report also noted that the US economy is recovering from its deepest recession in the post-war period.

"While recent growth is encouraging, the economy still faces significant challenges," said the report. The number one challenge is still in the labor market.

The US unemployment rate, currently at 9.0 percent, is not expected to fall significantly this year.

Besides, housing market and long-term fiscal position are " unsustainable," according to the report.

In recent remarks, Treasury Secretary Timothy Geithner stated that China is the fastest growing market for US exports. In 2010, US exports to China grew at a pace that was 50 percent higher than the rest of the world.

E-paper

Tapping into the future

Foreign companies are investing in China's water industry as many predict a growing profit margin.

Headhunters ride on growth
Commercial property rides wave
Learning from the past

European Edition

Specials

Cuisine central

London's Chinatown is helping diners appreciate full palate of Chinese food

Tying the knot

Danish couple's high-end macrame export business takes off in the mountains of Yunnan.

Truly a super woman

Li Yuchun first came to prominence in 2005 as the Super Girl winner, and since then has become an international star.

Memory lanes
Great expectations
A diplomat of character