China’s widening of the yuan’s trading band will do little to blunt criticism of its currency policy by the United States and the Treasury Department said on Sunday more progress was needed to correct a “misalignment” of the exchange rate.
Not much shift in the political rhetoric from Washington was expected in the wake of China’s milestone move on Saturday to allow the yuan to rise or fall 1 percent from a mid-point every day, effective Monday, from its previous 0.5 percent limit.
“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.
The United States has been pressing China for most of the past decade to let its yuan currency rise in value, arguing it was necessary to help rebalance the global economy by slowing the growth of China’s huge trade surpluses.
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