The PBOC slashed the value of the onshore yuan today at the daily reference rate setting;
Early trading has taken the onshore yuan lower still, USD/CNY to above 6.9370
Earlier the US Treasury released its currency report, not naming China as a currency manipulator again despite all the threat and bluster. there has been speculation the Treasury would name China as a manipulator, for about the last three decades, but so far … not.
What did the Treasury do?
- it listed China (along with many others) on a watch list
- They did single out China into its own section of the report (the others were grouped together, China got a special section)
- Treasury said they are watching major trading partners that account for a disproportionate share of the overall US trade deficit even if the country does not meet the criteria used
What did China do?
- Laughed and slashed the value of the yuan, that’s what