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         US Treasury: China Currency Still 'Significantly Undervalued'

   The Obama administration has again criticized China for significantly
   undervaluing its currency, but stopped short of labeling Beijing a
   currency manipulator.
   In its twice-yearly report to Congress Wednesday, the United States
   Treasury acknowledged the value of China`s currency, the renminbi, is
   rising, "but not as fast or by as much as is needed."
   Washington has long accused Beijing of keeping the value of its
   currency artificially low, giving Chinese companies an unfair advantage
   over U.S. manufacturers. A lower Chinese currency makes Chinese goods
   cheaper in the U.S., and makes American goods in China more expensive.
   The Treasury report called the RMB "significantly undervalued." It
   suggested China was keeping its currency from strengthening by resuming
   its policy of government intervention, specifically, the "large scale
   purchases of foreign exchanges this year."
   But the report did not label China a currency manipulator, a
   designation that could eventually lead to trade sanctions and would
   prompt an angry reaction from Beijing. It said the U.S. will continue
   to monitor the pace of RMB appreciation and press for further policy
   changes.
   President Barack Obama has argued that China is more likely to make
   economic reforms if the U.S. takes a less adversarial approach. The
   last time the U.S. labeled China a currency manipulator was in 1994
   under then-President Bill Clinton.
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   [1]http://www.voanews.com/content/us-treasury-china-currency-still-sign
   ificantly-undervalued/1780475.html

References

   1. http://www.voanews.com/content/us-treasury-china-currency-still-significantly-undervalued/1780475.html