The US Treasury welcomed Tuesday with caution devaluation of the Chinese currency, hoping she sealed a greater liberalization of the yuan while pressing Beijing to encourage domestic demand rather than foreign trade.
“While it is too early to judge the implications of change in the reference rate of the PBOC (PBOC), China indicated that these changes announced Tuesday are a further step towards an exchange rate determined more by the market, “said a spokesman for the Treasury said in a statement.
China’s central bank lowered Tuesday of almost 2% reference rate of the yuan against the dollar while affirming want to grant a greater role to the market to determine the value of the Chinese currency.
The United States argued for years that the yuan is undervalued, which promotes Chinese exports by making them cheaper but they demanding at the same time that the Chinese currency is less supervised and its course is freely determined by the market.
According to several experts, the yuan or renminbi is under downward pressure for several months.
The Treasury insists that Beijing and continue its economic reforms to boost domestic demand rather than exports. “We will continue to press China on its pace of reforms for transition to an exchange rate based on the market as well as its willingness to become a more dependent economy in domestic demand,” the statement added.
“Any reverse would be a disturbing development,” warns in conclusion the US Department of Finance
8/11/2015 8:08:25 p.m. -. Washington, August 11, 2015 (AFP) – © 2015 AFP
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