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Trump Accused of Playing Politics With Treasury Report on China

  • U.S. lifts Beijing currency cheat label as trade deal nears
  • Move risks undermining significance of bi-annual forex report
Bloomberg business news
Trump still needs China as an enemy going into the election, according to Algebris’s Alberto Gallo.Source: Bloomberg

The U.S.’s abrupt declaration on Monday that China is no longer a currency cheat -- two days before the signing of a trade deal with Beijing -- shows how President Donald Trump has turned a routine, technical report on foreign exchange into a political cudgel.

“It’s absolutely being used as a bargaining tool,” said John Doyle, a foreign currency strategist at Tempus Inc. in Washington. “We will look at that report now and wonder: Who are they going to flip on next if it’s politically convenient to get a deal done?”