U.S. officially removes China from its list of currency manipulators
Updated: 2020-01-14 16:02:23 KST
The U.S. Treasury Department has officially removed China's designation as a currency manipulator a matter of days before the two countries finalize a "phase one" trade deal.
The Treasury released its long delayed currency report on Monday, following its designation of Beijing as a currency manipulator in August last year - the first such designation in 25 years.
The updated report noted that Beijing had made important commitments regarding its currency - the yuan - as part of the new trade agreement and its value has appreciated since September.
One pundit sees the decision as an attempt to make a correction since China only fulfilled one of the three criteria of a currency manipulator, and that the U.S. is using this as an opportunity to change its definition of currency manipulation.
"It also shows that the United States is going back to the definition it had about currency manipulation so that they can apply the definition more easily toward not only China but all other of their trade partners."
Last month, the U.S. and China agreed on a partial trade deal that calls for Beijing to purchase up to 200 billion U.S. dollars of American products over the next two years.
Beijing also agreed to end the manipulation of its currency, the yuan.
However, South Korea remains on Washington's monitoring list for currency manipulating countries along with Germany, Japan, Malaysia and Vietnam.
A U.S. trading partner is named as a currency manipulator if it has a bilateral trade surplus of 20 billion dollars or more with the U.S., a current account surplus of two percent or more of its GDP, and persistent one-sided intervention in foreign exchange markets.
Kim Dami, Arirang News.