US drops Currency Manipulation Charge against China ahead of Trade Deal

According to the semi-annual report on Macroeconomics and Foreign Exchange Policies published by the United States Treasury Department on Monday 13^th January 2020, United States has dropped its charges of designating China as a currency manipulator as no major US trading partner was reported as currency manipulator in the report which came less than 48 hours ahead of phase I signing of the US-China trade deal which is scheduled to take place on Wednesday, 15^th January 2020 at the US capital Washington D.C between the US President, Donald Trump and the Chinese delegation lead by the Vice-Premier of China, Liu He.

On 5th August 2019. the Treasury Department of the United States labeled the 2^nd largest economy of the world, China as currency manipulator in its semi-annual foreign exchange policy report by criticizing Beijing that it allowed its currency Yuan to fall below an exchange rate of 7 to 1 US dollar and also mentioned that steps were taken by the Chinese Government in order to gain an unfair advantage in international trade by devaluating Yuan.

Month: Current Affairs - January, 2020