WASHINGTON - The U.S.
Department of the Treasury today released the Semi-Annual Report to Congress on
International Economic and Exchange Rate Policies that is required under Section
3005 of the Omnibus Trade and Competitiveness Act of 1988. The Report covers
international economic and foreign exchange developments in the first half of
2013 and, where pertinent and available, data through end-September
3004 requires Treasury to consider whether countries manipulate the rate of
exchange between their currency and the United States dollar for purposes of
preventing effective balance of payments adjustments or gaining unfair
competitive advantage in international trade. Based on the analysis in this
report, Treasury has concluded that the standard identified in Section 3004 of
the Act has not been met with respect to any of the countries covered in this
Report for the period evaluated.
to the report, there has been some progress on the goal of achieving strong,
sustainable and balanced growth and the necessary exchange rate adjustments, but
the record is mixed, and further progress is needed.
The RMB is
appreciating, but not as fast or by as
much as is
will carefully monitor the pace of RMB appreciation in China, and press for
further policy changes consistent with market determination of the exchange
rate, minimizing intervention, transparency with respect to intervention, and a
level playing field for American workers and businesses. From June 2010, when
China moved off its peg against the dollar, through mid-October 2013, the RMB
has appreciated by a total of 12 percent against the dollar and 16 percent in
inflation-adjusted terms. China’s current account surplus has fallen from over
10 percent at its peak to 2.5 percent today. On the other hand, the evidence
that China has resumed large-scale purchases of foreign exchange this year,
despite having accumulated reserves that are more than sufficient by any
measure, is suggestive of actions that are impeding market determination and a
currency that is significantly undervalued.
we will closely monitor Japan's policies and the extent to which they support
the growth of domestic demand.
will encourage those countries within the euro area with large and persistent
surpluses to take action to boost domestic demand growth and shrink their
surpluses in order to facilitate growth and rebalancing.
will urge the Republic of Korea to limit its foreign exchange interventions to
the exceptional circumstances of disorderly market conditions and to commit to
transparency with respect to foreign exchange intervention.
will push for comprehensive adherence to recent G-7 and G-20 commitments to move
toward more market determined exchange rates, avoid persistent misalignment, and
refrain from targeting exchange rates for competitive purposes.
Report, along with past Reports, can be found at