Chinese Bank Director Criticizes US Decision to Designate China as Currency Manipulator

The director of research for the People's Bank of China criticized the U.S.’s decision to list China as a currency manipulator, saying the U.S. has deviated from its own standards and insisting that China does not use its exchange rate as a “tool to deal with trade disputes.” “The US has unreasonably labeled China as a ‘currency manipulator,’ triggering financial market turmoil, and will greatly hinder international trade and global economic recovery, and ultimately will suffer from its own consequences,” research director Wang Xin said during an Aug. 6 Chinese State Council press conference, according to an unofficial translation.

Wang said the decision did not meet the standards for currency manipulators set by the U.S. Treasury Department. “This action by the US will have a serious negative impact on the stable operation of the international monetary system,” he said. Treasury announced Aug. 5 it is designating China as a currency manipulator, saying the country devalues its currency to gain an “unfair competitive advantage in international trade” (see 1908060045).