Dec. 27 (Bloomberg) -- The Obama administration declined to brand China a currency manipulator while saying appreciation of the yuan is insufficient and pledging to push for more “flexibility” in the currency.
“Over the past decade, China has resisted very strong market pressures” for appreciation of the yuan, the Treasury Department said today in a report to Congress on foreign- exchange markets. “China’s real effective exchange rate has exhibited persistent and substantial undervaluation, although the estimated range of misalignment has narrowed over the course of the past 18 months.”
“Treasury will closely monitor the pace” of yuan appreciation and “press for policy changes that yield greater exchange-rate flexibility,” the Treasury said.
The report, originally due Oct. 15, follows the administration’s push for a stronger yuan. President Barack Obama said last month that “enough is enough” on what the U.S. views as China moving too slowly to make changes in its economy.
--Editors: James Tyson, Christopher Wellisz
To contact the reporters on this story: Cheyenne Hopkins at Chopkins19@bloomberg.net;
To contact the editor responsible for this story: Christopher Wellisz at email@example.com