The following is an excerpt from: The Associated Press | December 27, 2011 | Nytimes.com |
WASHINGTON (AP) — The Obama administration on Tuesday declined to label China a currency manipulator after seeing recent increases in the value of the renminbi compared with the dollar.
The decision angered some manufacturing groups, which have accused China of artificially holding down the value of its currency, the renminbi, to gain trade advantages. A cheaper renminbi makes Chinese goods less expensive when they are shipped to the United States. It also makes American goods more expensive in China. Both could increase America’s trade deficit with China, which is on pace to reach a record high this year.
The Treasury Department said the renminbi had appreciated 12 percent against the dollar in the last 18 months, after adjusting for inflation. In addition………..
To read more: Nytimes.com
