China has shown some renewed willingness to let the renminbi strengthen, but the currency “remains significantly undervalued”, Washington said on Wednesday.
In a semiannual report to Congress on exchange-rate policies of major trading partners, the Treasury Department said changes to China’s currency policy remain incomplete and that Beijing should allow the market to play a greater role in setting the renminbi’s value, Bloomberg News reported.
China should build on the apparent recent reduction in foreign-exchange intervention and durably curb its activities in the foreign-exchange market, the Treasury was quoted as saying.
The report covering the first half of this year, however, did not label China as a currency manipulator.
In other comments, Washington reiterated its call for more balanced global growth as the US economy gathers strength, the euro area and Japan struggle, and emerging markets such as China face slowdowns, Bloomberg noted.
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