No Major Trade Partner Manipulates Currency, Says US Treasury

None of major trading partners of the United States is manipulating currency to gain unfair trade advantages, the U.S. Treasury Department said Thursday.

The Treasury has not found that either China or any other major trading partners of the United States met the requirements for designation of a country that is manipulating its currency to gain unfair trade advantages against the United States, said the Treasury in its report to Congress on international economic and exchange rate policies.

In the latter half of 2007 and early months of 2008, the report said, the appreciation of the Chinese currency RMB increased against the U.S. dollar.

By mid-April 2008, the RMB has appreciated by 18.4 percent since the change in exchange rate policy on July 21, 2005, the report said.

The report, which the Treasury is required to deliver to Congress every six months, also said that U.S. economic growth slowed significantly in the last quarter of 2007 and the first quarter of 2008.

A slowdown in global growth is expected in 2008, in response to ongoing financial market turbulence, said the report.

Emerging market economies are likely to be less affected by the turbulence than advanced economies -- though not immune, it said.

Source: CRIEnglish