US initial softening stance on the renminbi since 2012

Updated: October 20, 2015  Views: 32

China Securities Network News According to foreign media reports on the 20th, Monday, the US Treasury said in a semiannual report >> << currency RMB 'below the appropriate medium-term valuation', which previously reported as 'substantially undervalued', that the United States softens stance on the currency issue. America this shift occurs after August the RMB exchange rate regime towards market-oriented reforms, devaluation, is not as expected as the appreciation of the United States.

US Treasury Department on Monday in its semi-annual foreign exchange policy report that the yuan is still 'lower than the value of its mid-level appropriate.' The report said that in recent years to promote the appreciation of the renminbi, 'core elements' still exist, such as the huge and growing current account surplus, the net inflow of foreign direct investment.

Nevertheless, the US Treasury no longer describe the yuan 'substantially undervalued' and give up the wording of the report since May 2012 has been used. The US Treasury also recognize that market forces to put downward pressure on the yuan, but also said that this trend is temporary in. However, the International Monetary Fund [microblogging] in May that the yuan 'is no longer undervalued.'

This is the Chinese central bank [microblogging] August 11 surprise to devalue, leading the renminbi since 1994 after the biggest two-day decline, the Obama administration released the first US exchange rate policy report. The report shows that the United States against China's exchange rate policy stance softened. Chinese central bank had said it would allow market forces to play a greater role in setting a daily central parity of RMB terms.

The US Treasury said the new exchange rate mechanism Challenges for China is that China will allow the yuan devaluation pressure as treat respond flexibly respond to the upward pressure on the US Treasury Department, said the key is for China to honor its commitments and only in the 'disorderly market environment' only under the foreign exchange market intervention.


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