US drops Currency Manipulation Charge against China ahead of Trade Deal

According to the semi-annual report on Macroeconomics and Foreign Exchange Policies published by the United States Treasury Department on Monday 13th January 2020, United States has dropped its charges of designating China as a currency manipulator as no major US trading partner was reported as currency manipulator in the report which came less than 48 hours ahead of phase I signing of the US-China trade deal which is scheduled to take place on Wednesday, 15th January 2020 at the US capital Washington D.C between the US President, Donald Trump and the Chinese delegation lead by the Vice-Premier of China, Liu He.

On 5th August 2019. the Treasury Department of the United States labeled the 2nd largest economy of the world, China as currency manipulator in its semi-annual foreign exchange policy report by criticizing Beijing that it allowed its currency Yuan to fall below an exchange rate of 7 to 1 US dollar and also mentioned that steps were taken by the Chinese Government in order to gain an unfair advantage in international trade by devaluating Yuan.

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