USA Suspect that Russia and China Manipulate Their Currencies
OREANDA-NEWS. Bloomberg financial agency wrote the US Department of the Treasury would expand the list of countries that manipulate their currencies to get benefits. Now there are 12 states in this list. Their number may grow to 20. Russia, Vietnam, Thailand, Indonesia, Ireland and Malaysia and others may join it.
The agency says that the Treasury Department was to provide the White House with a list of currency-manipulating countries at the beginning of April, but postponed making a report.
The listing itself does not imply any legal consequences, except that the United States authorities must enter into negotiations with those who manipulate the currency. However, according to Bloomberg’s opinion, every authority called currency manipulator will face certain market consequences.
In mid-April, US President Donald Trump wrote on Twitter: “Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!"
The President of the United States has repeatedly accused China of currency manipulation. For instance, in 2016, he said that Beijing intentionally devalued the yuan to create difficulties for American companies in the competition area.Earlier, Russian presidential aide Andrey Belousov said that a rise in US duties on Chinese goods could lead to a weaker rouble exchange rate. At the same time, Belousov added that the depreciation of the national currency “objectively enhanced the competitiveness of our economy”. According to him, it is much more dangerous when the rouble exchange rate changes unpredictably.