Reuters: U.S. designates China as currency manipulator for first time in decades
WASHINGTON (Reuters) - The U.S. government has determined that China is manipulating its currency and will engage with the International Monetary Fund to eliminate unfair competition from Beijing, U.S. Treasury Secretary Steven Mnuchin said in a statement on Monday.
The move brings already tense U.S.-Chinese relations to a boil and fulfills U.S. President Donald Trump’s promise to label China a currency manipulator for the first time since 1994.
The U.S. action follows China allowing its yuan to weaken past the key 7-per-dollar level on Monday for the first time in more than a decade. Beijing later said it would stop buying U.S. agricultural products, inflaming a yearlong trade war with the United States.
The sharp 1.4% drop in the yuan comes days after U.S. President Donald Trump stunned financial markets by vowing to impose 10% tariffs on the remaining $300 billion of Chinese imports from Sept. 1, abruptly breaking a brief ceasefire in a bruising trade war that has disrupted global supply chains and slowed growth.
The news knocked the dollar sharply lower and bolstered the price of gold .
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Update #1: U.S. declares China a currency manipulator (NBC)
Update #2: US Treasury Department labels China a currency manipulator (AP)
Update #3: For The First Time In 25 Years, US Treasury Just Designated China A Currency Manipulator (Zero Hedge)
WNU Editor: The U.S. - China trade war has now entered a new and potentially very damaging phase.
