The United States will be seriously concerned if the renminbi’s recent depreciation reflects a policy change in China from allowing the market to decide the currency’s exchange rate, Reuters cited an unidentified senior US Treasury Department official as saying on Monday.
The official’s comment suggests that the US was not fully buying the assurance that China really intends to reduce official interventions in exchange markets.
US Treasury Secretary Jack Lew welcomed last month a decision by Beijing to widen the renminbi’s daily trading band against the dollar. However, the Reuters source noted that the widening of the trading band came only after a depreciation of the renminbi and there were reports that Chinese authorities exerted considerable intervention in exchange markets, which he said was exactly what Washington wants Beijing to refrain from.
The official may be trying to clarify Washington’s stance before meetings later this week of the International Monetary Fund and between Group of 20 nations, the report said.
– Contact HKEJ at [email protected]