Northeast India’s Only English and Hindi Satellite News Channel

US designates China as ‘currency manipulator’

First Published: 6th August, 2019 15:47 IST

The United States on Monday designated China as a currency manipulator and will work with the International Monetary Fund to address the issue, the Treasury Department said as the trade

The United States on Monday designated China as a currency manipulator and will work with the International Monetary Fund to address the issue, the Treasury Department said as the trade war between two countries escalated further.

Earlier in the day, US President Donald Trump accused China of using currency manipulation to steal US businesses and factories which has hurt the job market. Shortly after his tweet, the Dow Jones Industrial stock index plunged by more than 900 points before closing down 767.

“Secretary (Steven) Mnuchin, under the auspices of President Trump, has today determined that China is a currency manipulator,” the Treasury Department said in a statement.

“As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions,” it said.

The Treasury stated that China had a long track record of keeping its currency artificially low through massive interventions in foreign exchange markets and recently Beijing had made further moves to devalue its currency.

“The context of these actions and the implausibility of China’s market stability rationale confirm that the purpose of China’s currency devaluation is to gain an unfair competitive advantage in international trade,” the statement said.

The Chinese government had publicly admitted that they controlled the Renminbi (RMB) exchange rate and remained prepared to do so in the future, the Treasury further said.

A weaker yuan could greatly neutralise the effects the US has intended to cause by imposing tariffs on Chinese imports, experts have said.

China has requested that its state-owned companies refrain from buying US imports, according to media reports.

(Sputnik/ANI)

COMMENTS

WE RECOMMEND

Banner
Bijay Chhetri becomes first Indian to join Latin American club Colon Futbol Club on loan

Colon Futbol team is a 116-year-old professional football team headquartered in Montevideo that presently competes in Uruguay's second division.

28th March 2024
Banner
Baltimore Bridge Collapse: Six missing workers presumed dead, says Maryland state police

Earlier, as stated by US President Joe Biden, eight people were unaccounted for after the Baltimore Bridge collapse, out of which two have been rescued

27th March 2024
Banner
6.9 magnitude earthquake jolts Papua New Guinea

A strong earthquake of 7.0 magnitude killed at least seven people in April last year

24th March 2024
Banner
PM Modi to embark on 2-day Bhutan Visit: What it means for the 2 nations?

Mr Modi's visit to Bhutan comes just days after his Bhutanese counterpart Tshering Tobgay' s tour of India and the meetings he had with the Indian Prime Minister, the President and other leaders.

20th March 2024
Banner
8-hour intermittent fasting each day increases risk of cardiovascular death: Study

The researchers, led by Victor Zhong of the Shanghai Jiao Tong University School of Medicine, analyzed data from adults included in the US Centers for Disease Control and Prevention’s National Health and Nutrition Examination Survey

19th March 2024