This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13592177
The article has changed 5 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Yuan at record high versus dollar after Treasury report | Yuan at record high versus dollar after Treasury report |
(about 1 hour later) | |
China's yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated. | China's yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated. |
The People's Bank of China (PBOC) fixed the yuan's mid-point at 6.4856 against the US dollar on Monday. | |
China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports. | China has been accused by the US and other developed economies of keeping the value of its currency artificially low to boost its exports. |
China is the world's biggest exporter. | China is the world's biggest exporter. |
The US and other major economies have said that China's policy of keeping the value of its currency low gives an unfair advantage to its manufacturers. | |
There have also been concerns that China's currency policies have also been responsible in part for big trade imbalances with its trading partners. | |
Currency manipulator | |
There had been repeated calls in the US to label China a currency manipulator, given Beijing's currency policies and reluctance to let the yuan trade freely. | |
China however has maintained that while it is willing to allow the yuan to appreciate, its pace has to be gradual. | |
It said that a sudden rise in the yuan will not only be detrimental to its export sector but will also have a negative impact on the overall economy. | |
In its report released on Friday, the US Treasury Department said that although China's currency was undervalued, the country was not a currency manipulator. | |
Analysts say that the report came as no surprise. | |
"While the US China Business Council (USCBC) has advocated repeatedly that China should allow its exchange rate to better reflect market forces, designating China as a 'manipulator' would achieve nothing," said Erin Ennis of USCBC. |