US Treasury staff finds ‘China is not manipulating yuan’
President Donald Trump has publicly and privately pressured Mnuchin to declare China a currency manipulator, but Treasury staff have not found grounds to do so, according to sources
The US Treasury Department’s staff has advised Secretary Steven Mnuchin that China is not manipulating the yuan as the Trump administration prepares to issue a closely watched report on foreign currencies, according to two people familiar with the matter.
The conclusion, if accepted by Mnuchin, would avert an escalation of the US-China trade war and remove a source of anxiety for emerging markets. Mnuchin could issue a different finding.
President Donald Trump has publicly and privately pressured Mnuchin to declare China a currency manipulator, but Treasury staff have not found grounds to do so, according to the people, who spoke on the condition of anonymity.
Formally accusing China of manipulating the renminbi would not trigger any sanctions or retribution, but the move would heighten tensions between the world’s two biggest economies.
The Treasury Department’s congressionally mandated twice-a-year report assessing whether trade partners are manipulating their currencies is on track for release next week, the people said.