U.S.'s Lew Says There's Still Room for China's Yuan to Increaseby
Treasury will release currency report Monday, Lew says
China seeks global support for yuan reserve-currency status
China’s currency still has room to appreciate, U.S. Treasury Secretary Jacob J. Lew said, adding that the world’s second-largest economy must abide by commitments not to weaken the yuan.
The Treasury will elaborate on its position on the yuan and other currencies in a semiannual report on foreign-exchange policies, which will be released Monday, he said.
“As you look to the future, there’s still room for the RMB to appreciate,” Lew said Monday in an interview on CNBC, referring to the renminbi, the official name of China’s currency. “We have to make sure that China understands that it’s very important that they keep their commitment to let the RMB go up as well as down.”
In the previous currency report, in April, the Treasury reiterated its view that the yuan “remains significantly undervalued.” The International Monetary Fund, by contrast, adopted the view in May that the currency is “no longer undervalued.” China undertook a surprise devaluation of the yuan in August.