The U.S. Treasury Department said it’s too early to judge the implications of China’s move to devalue the yuan and will keep pressing the nation to reduce intervention in its exchange rate.
China has indicated that the changes it announced earlier Tuesday are a step toward a more market-determined exchange rate, and the U.S. will monitor how the changes are implemented, the Treasury said in an e-mailed statement in Washington. Any reversal in reforms would be troubling, the department said.
The U.S. has continued to urge China to continue financial reform, increase exchange-rate flexibility and move quickly toward a more market-oriented exchange-rate system, the Treasury said in the statement.
China cut the yuan’s value against the dollar by 1.9 percent on Tuesday in Beijing, following a report that the nation’s exports plunged 8.3 percent in July from a year earlier. The People’s Bank of China called the currency move a one-time adjustment and said its fixing will become more aligned with supply and demand.