14.04.2021, 11:45
US Wants a Truce in a Trade War with China
Source: OREANDA-NEWS
OREANDA-NEWS Janet Yellen, who is the US Treasury Secretary, explained that the country will not classify China as a currency manipulator, as the country's previous authorities have repeatedly done. Bloomberg reports. According to experts, this action by the authorities may indicate that the United States wants a truce in the trade war with Beijing, which has been going on since the end of 2017.
The US exchange rate report is expected to be released on April 15th. At the moment, the final version of the document is not yet ready, but it is already known that it will not mention China as a currency manipulator.
In addition, Janet Yellen can initiate the cancellation of the reform during the presidency of Donald Trump. The former head of state has tightened the requirements for other states, lowering the threshold for recognizing them as currency manipulators. This status allows Washington to impose some restrictions, including on bilateral trade.
If this happens, the number of countries whose exchange rates are monitored by the US Treasury Department on a regular basis could almost halve. At the same time, Trump has often been accused of politicizing the process of determining China's status. Beijing was labeled a manipulator in 2019, according to some analysts, only in order to reverse the decision five months later to give Washington an advantage in negotiations on a comprehensive trade agreement.
The US exchange rate report is expected to be released on April 15th. At the moment, the final version of the document is not yet ready, but it is already known that it will not mention China as a currency manipulator.
In addition, Janet Yellen can initiate the cancellation of the reform during the presidency of Donald Trump. The former head of state has tightened the requirements for other states, lowering the threshold for recognizing them as currency manipulators. This status allows Washington to impose some restrictions, including on bilateral trade.
If this happens, the number of countries whose exchange rates are monitored by the US Treasury Department on a regular basis could almost halve. At the same time, Trump has often been accused of politicizing the process of determining China's status. Beijing was labeled a manipulator in 2019, according to some analysts, only in order to reverse the decision five months later to give Washington an advantage in negotiations on a comprehensive trade agreement.
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