With Old Provisions, United States And China Are Near Currency Agreement – ZMR News Blog

With Old Provisions, United States And China Are Near Currency Agreement


Reportedly, few restrictions on control of Beijing over the strength of its currency might put by an awaiting trade treaty among China and United States, possibly inflaming trade hawks in Congress and inside the administration of Trump itself. Control of China over its currency’s value, has been a major point of conflict among the West and the Beijing, however, in recent years the issue has been faded in prominence. It was contended by officials and lawmakers in other countries that currency of China, the Renminbi was unfairly weakened by Beijing, as compare to the currency of America and additional currencies, giving Chinese factories and companies a benefit when retailing goods abroad.

The accusation was long denied by China. Previous month, in Washington during top trade talks the governor of central bank of China, Yi Gang said that, consensus on many important issues and keys was reached by the two sides, regarding currency markets. Mr. Yi added that, an understanding will be included in that consensus that both countries will be avoiding devaluating their currencies to achieve a competitive advantage for their exports. He also added that, close communication will be maintained by both countries and detailed information would get revealed in harmony with International Monetary Fund standards.

Varying stances have been taken by American officials on the currency provisions. Steven Mnuchin, Treasury Secretary and President Trump have stated satisfaction with them. But 2 weeks ago, congress was cautioned in testimony by Robert E. Lighthizer, U.S. trade representative that, nothing was totally resolved in the trade negotiations till everything had been established. Though currency of China has strengthened in recent years, new relevance has been given to it by the trade war. Between the months of February-October, the Renminbi fell 10% against the U.S. Dollar, to the strong annoyance of trade hawks in the administration of Trump.

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