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U.S. Treasury Does Consider China a Currency Manipulator; However Officials Identify Concerns with Chinese Currency Valuation Policy

In its report to Congress, the U.S. Treasury Department did not list China as a currency manipulator. In releasing its findings, a Treasury official said that China’s currency remains undervalued. The Treasury Department as part of the 1988 trade act is required to identify countries that manipulate their exchange rates to gain an unfair advantage in trade. While China and other countries including Japan are not technically in violation of this act, there are concerns that their respective currencies have not accurately reflected the recent volatility in world financial markets.