WASHINGTON, April 15 (Reuters) – The U.S. Treasury
Department said on Sunday that a wider yuan trading band could
help reduce global trade imbalances if it allows more play for
market forces.
“China’s decision to widen the daily trading band for its
exchange rate, if implemented in a way that allows the value of
the exchange rate to reflect market forces, could contribute
rebalancing, which would be positive for China, the United
States, and the global economy,” a Treasury Department official
told Reuters.
But the Treasury said the process of correcting a
“misalignment” of China’s exchange rate is still incomplete and
said more progress was needed.
“While we welcome the progress to date, the process of
correcting the misalignment of China’s exchange rate remains
incomplete, and further progress is needed,” the Treasury said.
U.S. manufacturers complain that China’s yuan is so
undervalued that it gives Beijing an unfair trading advantage
and they blame it for having cost millions of lost American
factory jobs.
The Treasury announced on Friday that a semi-annual report
to Congress on currency practices of major trading partners,
including China, that was due on April 15 was being delayed
until after a series of upcoming international meetings.
