US Urges China to Be More Transparent in Yuan Exchange Rate Policy. The United States (US) Treasury Department again called for greater transparency in how China carries out its yuan exchange rate policy.
In its semi-annual foreign exchange report released on Tuesday (7/11/2023), covering the four quarters to June 2023, the Treasury Department called for this and it monitored China, along with five other major trading partners, regarding its currency practices.
The announcement came two days before Treasury Secretary Janet Yellen met with Deputy Prime Minister He Lifeng. Meanwhile, the meeting between the two parties was held to restore high-level economic dialogue.
A senior official explained that Treasury officials aimed to express concerns about the lack of transparency in China’s currency management and monetary policy in the coming weeks.
The report, mandated by the US Congress, is designed to pressure trading partners deemed to be artificially depressing their currencies to gain a competitive advantage.
However, the US dollar has risen in recent months along with US bond yields. This has caused many countries to take steps to strengthen their exchange rates.
US Urges China to Be More Transparent. China itself is one of six on the Treasury Department’s watch list, which are major trading partners deemed worthy of greater attention in their currency practices and macroeconomic policies.