The decision taken by the United States to categorize China as a currency manipulator will adversely affect the recovery of the global economy and the world’s financial system, the People’s Bank of China says in its statement released on Tuesday.
“Such actions will not merely inflict serious harm on the international financial order and lead to turbulence on the financial market, but will also significantly hinder recovery of the global economy and international trade. The US will eventually bear consequences of their actions,” the bank said.
“Such unilateral behavior of the US undermines the multilateral consensus on key currency issues,” the People’s Bank of China noted. “China urges the US to return to the right path and be fair,” the statement added. “In its turn, China will continue focusing on the floating exchange rate mechanism, keeping the rate of the yuan against the dollar at a reasonable and balanced level,” the bank noted.
The US Department of the Treasury designated China earlier as a currency manipulator. As reported earlier, the US Secretary of Treasury is going to apply tothe International Monetary Fund for elimination of “unfair advantages created by China.”
The People’s Bank of China reduced the yuan rate against the dollar by 458 basis points on Tuesday to the level of 6.9683 yuan per dollar.