Foreign Exchange Market

In Brief

PUBLISHED : Friday, 21 December, 2007, 12:00am
UPDATED : Friday, 21 December, 2007, 12:00am

Beijing not manipulating currency, says US report

The US Treasury Department said on Wednesday that a 'substantial undervaluation' of the yuan poses a risk to the world economy but again said Beijing was not manipulating the currency for trade gains. 'China should significantly accelerate the appreciation' of the yuan's exchange rate 'to minimise the risks that are being created for China itself as well as the world economy', the department said in a semi-annual report to Congress. The report, which concluded that no major US trade partner was manipulating its currency, said it was vital that the International Monetary Fund vigorously implement a new exchange rate surveillance framework it had announced in June 'to maintain its relevance in the international financial system'. The yuan rose for a third day against the US dollar yesterday and has gained 6 per cent this year. Reuters