China regrets US decision to label China currency manipulator

Beijing: China deeply regrets the US Treasury’s decision to label China “a currency manipulator,” the People’s Bank of China said Tuesday.

Such a label on China does not meet the quantitative criteria for so-called “currency manipulators” set by the U.S. Treasury, the central bank said in a statement.

The US labeling is an arbitrary unilateral and protectionist practice, which seriously damages international rules and will significantly impact the global economy and financial markets, it said.

The central bank called on the United States to “pull back before it is too late” and return to a “rational and

fair track.”

The recent weakening is a reflection of market supply and demand as well as fluctuations in the global foreign

exchange markets amid changes of the global economic situation and rising trade tensions, the statement said.

The central bank has long been committed to keeping the yuan’s exchange rate basically stable at a reasonable and balanced level.

The Chinese currency is the strongest among the G20 and is one of the currencies that has seen substantial appreciation globally.

From the beginning of 2005 to June this year, the currency’s nominal exchange rate appreciated 38 percent and real exchange rate strengthened 47 percent.

In the annual Article IV consultation with China, the International Monetary Fund concluded that the yuan’s

exchange rate was broadly in line with fundamentals.

During the 1997 Asian financial crisis and the 2008 global financial crisis, China has been committed to

keeping the currency stable, which offered solid support to the stabilization of the international financial market and global economic recovery.

Despite the United States’ constant escalations to the trade dispute since last year, China has never resorted to competitive devaluation.

“China has not and will not use its currency as a tool to deal with trade disputes,” said the statement.