Following earlier controversy over statements made by U.S. Treasury Secretary Timothy Geithner, the U.S. Treasury has not labeled China a currency manipulator. From Reuters:
The U.S. Treasury Department on Wednesday declined to label China a currency manipulator, retreating from tough talk last year when a campaigning Barack Obama said Beijing had kept its currency’s exchange rate unfairly low.
In a semiannual report to Congress on currency practices of key trading partners, the Treasury said all were suffering from the current global economic downturn, but said none manipulate their currencies for trade advantage.
While the Treasury said it “remains of the view that the yuan is undervalued,” as shown by China’s huge trade surpluses and foreign exchange reserves, it did not estimate the level at which the yuan
, also called the renminbi, should be trading.