LOC09:24
06:24 GMT
WASHINGTON, Oct 18 (KUNA) -- The US Department of the Treasury delivered to Congress Thursday the semiannual "Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States."
Treasury found that six major trading partners "continue to warrant placement on the "Monitoring List" of major trading partners that merit close attention to their currency practices," which are China, Germany, India, Japan, Korea and Switzerland.
In this regard, Treasury Secretary Steve Mnuchin said in a statement that the Treasury "is working vigorously to ensure that our trading partners dismantle unfair barriers that stand in the way of free, fair, and reciprocal trade."
He stressed that "of particular concern are China's lack of currency transparency and the recent weakness in its currency."
"These pose major challenges to achieving fairer and more balanced trade, and we will continue to monitor and review China's currency practices, including through ongoing discussions with the People's Bank of China," he affirmed.
Meanwhile, the Treasury estimated that "while China's exchange rate practices continue to lack transparency... direct intervention by the People's Bank of China this year has been limited."
It added that "however, recent depreciation of the renminbi will likely exacerbate China's large bilateral trade surplus with the United States."
"Treasury places significant importance on China adhering to its commitments to refrain from engaging in competitive devaluation and to not target China's exchange rate for competitive purposes. China could pursue more market-based economic reforms that would bolster confidence in the renminbi," it stressed.
The Treasury affirmed that it is "is working actively across a broad range of areas to help ensure that trade expands in a balanced way that protects U.S. firms and workers against unfair foreign trade practices."
"The United States is committed to working towards a fairer and more reciprocal trading relationship with China. To this end, we are engaging China to address its market-distorting policies and practices," it noted. (end)
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