Currency

U.S. Currency Hawks Continue Push For TPP Rules After Vietnam Follows China's Lead

Lawmakers and U.S. stakeholders who are pressing for the Trans-Pacific Partnership (TPP) to include strong, enforceable currency rules were further galvanized last week by Vietnam's devaluation of its currency in an effort to stem the impact of China's decision earlier this month to devalue the renminbi (RMB) relative to the U.S. dollar. These critics of the administration’s currency policies alleged that the Aug. 19 devaluation by Vietnam, as well as the depreciation of currencies in Asia-Pacific countries since China’s first...

President's trade promises on China collide with reality-built barriers

In his first 100 days in office, President Trump went from a being a new head of state elected on promises of getting tough on the “job-stealing” China to confronting the realities of crafting a coherent strategy toward the largest rising power, key U.S. trading partner and major player in Asian security issues -- without having centrally important agencies fully staffed. Judging Trump’s first 100 days on China, and trade policy toward China in particular, the president’s Republican allies in...

Despite new criteria, no 'substantive change' seen in Treasury currency report

Trade analysts and attorneys contend that the new element added to the Treasury Department's semiannual Foreign Exchange Rate Report -- for the first time targeting countries with disproportionate shares of the U.S. trade deficit -- could be seen as a warning shot across China's bow but doesn't have a significant immediate impact. The report to Congress, released on April 14, did not find that any country met either the previous or revised criteria for currency manipulation, but it touted as...

Schumer presses Trump to label China a currency manipulator

Senate Minority Leader Charles Schumer (D-NY) on Jan. 24 repeatedly called on President Trump to follow through on his campaign promise to label China a currency manipulator. Speaking following a closed Democratic Caucus luncheon, Schumer said “the president when he ran, repeatedly said 'on day one, I'm going to name China a currency manipulator.' But he has not delivered.” “If President Trump is serious about bringing jobs back to the U.S., he could immediately, on his own, without congressional action,...

'Currency manipulator' label could irritate China, but requires no further U.S. action

If President-elect Trump follows through on his campaign promise to name China a currency manipulator, the severity of China's response could depend on whether he simply slaps the label on Beijing -- which has no legal repercussions -- or goes further and uses it as a justification for imposing trade sanctions. Labeling China a currency manipulator does not require the U.S. to take any punitive measures against that country, but rather requires the administration to launch negotiations with Beijing. Therefore,...

Academics: Treasury criteria do not preclude naming China a currency manipulator

President-elect Trump will be able to instruct the Treasury Department to name China a currency manipulator by using a 1988 trade law even though China does not meet all three criteria used in an October Treasury report to analyze major trading partners' foreign exchange policies, according to analysts and academics interviewed by Inside U.S. Trade. Trump has said he is planning to name China a currency manipulator on “day one” of his term in office and has also threatened...

Report

Treasury Press Release

Previously Posted:
Treasury Currency Report Notes August Chinese RMB Devaluation, Says Exchange Rate Undervalued In 'Medium-Term'

Obama Issues Executive Order On Currency Manipulation Provisions In Customs Bill

The Obama administration has issued an executive order spelling out responsibilities and authority across federal departments and offices on addressing currency manipulation under the Trade Facilitation and Trade Enforcement Act of 2015, also known as the customs bill. The executive order, issued July 22, requires the Treasury Department to seek the views of the U.S. Trade Representative before undertaking enhanced analysis of a country engaged in currency manipulation in accordance with three new provisions established in the customs bill. Treasury...

Statement By Treasury Secretary Jack Lew

Remarks By Chinese Premier Li Keqiang

Previously Posted:
Chinese Premier Li Tells IMF Director That It Has 'No Intention' To Depreciate Currency, Start 'Trade War'

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