Published: Wed, April 18, 2018
Global | By Marsha Munoz

China calls Trump's charge of currency devaluation contradictory

China calls Trump's charge of currency devaluation contradictory

The President took to twitter to accuse both China and Russian Federation for "playing the Currency Devaluation game" sending the greenback moderately softer on Monday.

In the interview, Mnuchin was asked to clarify Trump's message, because it contradicted a report issued on Friday by the Treasury Department, which said China's currency recently moved in a way that would benefit USA exporters.

Trump said Russian Federation and China are devaluing their currencies amid a possible new round of sanctions against Russian Federation and a simmering trade war with China.

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U.S. President Donald Trump's Monday tweet accusing China of "playing the currency devaluation game" contradicts with the recent conclusion of the U.S. Treasury Department.

The US President's statement is a reference to what he regards as an unfair commercial advantage - if the currency of a country is artificially lowered, its exports are more competitive.

Meanwhile, the United States dollar has been falling against the Chinese yuan for 16 months and is trading near the lowest since mid-2015. Treasury officials did not find China guilty of devaluing its currency, in a Friday report. "That's something that the Treasury Department is watching very closely and we're continuing to monitor it", she said Monday.

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Hua added that China will continue with its reforms to come up with mechanisms to counter the flip-flops in foreign currency exchange rates.

According to the report, "the Monitoring List comprises China, Japan, (South) Korea, Germany, Switzerland, and India".

In the past three years, the Federal Reserve raised interest rate six times to a range between 1.5 percent and 1.75 percent, and says it expects to raise the rate two or three more times this year.

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Presidents have often used the semiannual reports as a diplomatic tool while engaging with countries that are seen as having exchange rate policies that harm United States jobs and economic growth.

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