Mnuchin warns China not to engage in competitive currency devaluations
US Treasury secretary Steven Mnuchin comments in an interview with the FT
- Says that Treasury monitors currency issues very carefully
- Notes that Chinese yuan has fallen "significantly" during the year
- Wants to discuss currency with China as part of trade talks
- Wants to make sure that China is not doing competitive devaluations
Do take note that the US Treasury will be releasing its FX manipulation report later this month. It is believed that they will do so on Thursday next week but Mnuchin's interview here says that it "will be published soon".
It's not the first time the US has been disputing the validity of China's currency decline this year and it definitely won't be the last we hear of it. For some context, the Chinese yuan has fallen by more than 8% against the dollar since the middle of June from just under 6.40 to now being above 6.90: