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 Treasury Releases Semi-Annual Report to Congress on International Economic and Exchange Rate Policies


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 Sections 3004 and 3005 of the Omnibus Trade and Competitiveness Act of 1988. The Report covers international economic and foreign exchange developments in the first half of 2012. Where pertinent and available, data and developments through early November 2012 are included.

Among other content, the report outlines the actions taken by China to appreciate its currency and move to a more market determined exchange rate.  The renminbi (RMB) has appreciated by 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010. China’s trade and current account surpluses both have fallen to 2.6 percent of GDP from peaks of 8.8 and 10.1 percent of GDP, respectively.  The Chinese authorities have substantially reduced the level of official intervention in exchange markets since the third quarter of 2011, and China has taken a series of steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange rate regime.  In light of these developments, Treasury has concluded that the standards identified in Section 3004 of the Act during the period covered in this Report have not been met with respect to China. Nonetheless, the available evidence suggests the RMB remains significantly undervalued, and further appreciation of the RMB against the dollar and other major currencies is warranted.

Treasury will continue to closely monitor exchange rate developments in all the countries covered in this report, with particular attention to the pace of RMB appreciation, and press for policy changes that yield greater exchange rate flexibility, improve transparency, level the playing field for American workers and businesses, and support a strong, sustainable, and balanced global economy.

The Report, along with past Reports, can be found at



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