The United States declares China a currency manipulator country

(PTI) Washington / Beijing, Aug 6, 2019, Tuesday

The United States has officially declared China a currency manipulator. The US has accused China of using the yuan to gain unfair competition in trade. It is worth mentioning that earlier in 1994, the then US President Clinton declared China a currency manipulator.

The US decision will increase the ongoing tensions between the two largest economies in the world due to the trade war. The announcement was made by the US yesterday after China yesterday allowed its currency yuan to fall below the dollar level by seven.

For the first time in the last eleven years, the value of the yuan has fallen below seven levels against the dollar. Another report states that Chinese companies have stopped buying US agricultural products.

It is worth mentioning that in his election campaign in 2016, Trump promised to declare China a currency manipulator. However, the Department of the Treasury kept China on the watchlist and left to make the final decision.

However, yesterday, after the value of the yuan fell below the dollar seven, the US officially declared China an artificial fluctuating currency (currency manipulator). The United States will now contact the International Monetary Fund (IMF) after the decision to try to curb China's use of the yuan to gain unfair competition in trade.

Earlier, US President Donald Trump said on Twitter that China was benefiting billions of dollars from the US by artificially altering unfair trade practices and currency exchange rates. China's objective is to continue this trend in the future.

The US Department of Finance has alleged in reference to the statement of the People's Bank of China (PBOC) that PBOC has acknowledged that it has extensive experience in defrauding its currency and is ready to do so. China's central bank in Beijing has opposed the US decision, saying the decision was made by breaking international rules.