The U.S. Treasury's decision to label China "a currency manipulator" totally deviates from the facts and doesn't have a leg to stand on, a spokesperson with China's forex regulator said Wednesday.
The label violates common sense and professionalism, as the U.S. Treasury called China's decision not to intervene in exchange rate depreciation "currency manipulation," and this is nothing more than a political manoeuvre, said Wang Chunying, spokesperson and chief economist with the State Administration of Foreign Exchange.
The U.S. practice has violated its own quantitative standards for currency manipulation, and the Omnibus Foreign Trade and Competitiveness Act of 1988 cited by the U.S. Treasury has no specific standards and is rather arbitrary, Wang said.
"Such an irrational and irresponsible practice will deteriorate the global economic and trade environment and hinder global economic growth," Wang said.
Wang pointed out that China's forex market has been running smoothly in general, and is capable of dealing with external challenges.
The RMB exchange rate will stay generally stable and at an adaptive and balanced level as the market has fully responded to the impact of recent U.S. escalating trade frictions, Wang added.