ForumIAS LATEST
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- Ethics Redbook 3rd Edition: A Textbook That Teaches You How to Think Ethically Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
- The US has officially designated China as a currency manipulator.This decision was taken after China’s central bank allowed the yuan to weaken in retaliation for new US tariffs.
- A weaker yuan makes Chinese exports more competitive or cheaper to buy with foreign currencies.
- The US Treasury department defines currency manipulation as when countries deliberately influence the exchange rate between their currency and the US dollar to gain unfair competitive advantage in international trade.
- The US has said that it will now engage with the International Monetary Fund (IMF) to eliminate the unfair competitive advantage created by China’s latest actions.
- It’s the first time that the US has labeled a country a manipulator since the 1990s when China was also the target.Officially,the designation requires the US government to seek negotiations with the government accused of manipulation.
- However,the US and China have been locked in a trade war since 2018 that has spilled into areas such as technology and now currency.
