The United States will no longer consider China a currency manipulator, according to media reports. The move helps pave the way for a trade deal the countries are expected to sign in the coming days.
Bloomberg said Monday that Trump administration sources said the Treasury Department will lift the designation of China as a currency manipulator in an upcoming semi-annual report.
The Treasury Department labeled China a currency manipulator last August, escalating the trade war between the countries, following a move by China’s central bank to allow the Chinese currency, the yuan, to fall in response to newly enacted U.S. tariffs. The U.S. had called on Beijing to boost transparency around its management of its currency.
The International Monetary Fund said last year, however, that the yuan is fairly valued, and that it is weakening because of economic conditions, with no evidence of manipulation.