The United States Treasury officially designated the Chinese government a ‘Currency Manipulator’ this week after days of trade threats and the Trump administration’s decision to impose more tariffs on Beijing.
“The United States took the rare step on Monday of formally labeling China a currency manipulator, as trade relations between the two countries continued to spiral downward after President Donald Trump’s decision last week to impose additional tariffs on Chinese goods,” reports Politico.
“In recent days, China has taken concrete steps to devalue its currency, while maintaining substantial foreign exchange reserves despite active use of such tools in the past,” the Treasury Department said in a statement, adding the US will “engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.”
Tensions between Beijing and Washington prompted a sharp decline in the Dow Jones Industrial Average Monday; plummeting nearly 750 points in a single day.
China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!
— Donald J. Trump (@realDonaldTrump) August 5, 2019
“China dropped the price of their currency to an almost a historic low. It’s called ‘currency manipulation.’ Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!” posted the President on social media.
Read the full report at Politico.