Washington _ Agencies
The US Treasury Department announced Thursday that no major trading partner of the United States has manipulated currency.
In its biannual report to Congress on international economic policies and exchange rates, the ministry concluded that there was no major trading partner of the United States that met the criteria for currency manipulation during the last four quarters, which ended in June 2018.
However, the report put China, Germany, India, Japan, South Korea and Switzerland in the "watch list", which means that foreign exchange policies of those countries are under close scrutiny.
The Treasury Department said it attached "great importance" to China´s commitment to its commitments to refrain from a competitive devaluation of the currency, expressing concern over the devaluation of the Chinese renminbi.
"China could seek more market-based economic reforms that would boost confidence in the renminbi," the ministry said.
"We will not participate in a competitive devaluation of the currency and we will not use the exchange rate as a tool to deal with trade frictions," Yi said in a statement to the International Monetary and Financial Committee meeting.
Marcus Rodauer, deputy director of the Asia-Pacific Department of the International Monetary Fund (IMF), believed the renminbi exchange rate is "broadly consistent" with China´s economic fundamentals, according to the Bloomberg agency.
Economists said it is not surprising that the value of other currencies is falling against the US dollar in light of the United States ´ intervention in fiscal stimulus and tightening its monetary policy.
Jason Foreman, a Harvard Kennedy School professor and former president of the White House Council of Economic Advisors, said that "financial expansions and contractions strengthen currencies," noting that the US currency has increased by more than 7 percent on average compared to the currencies of business partners since April.
"There are no direct indications of such manipulation," Foreman said. U.S. policy and changing economic fundamentals have weakened the renminbi against the dollar. "
The governor of the Chinese central Bank said China will continue to push market-based reforms in the interest rate and drainage systems and maintain an exchange rate
