China devaluation sparks fear of currency war, angers U.S. lawmakers
Tue Aug 11, 2015 7:19pm EDT
Senior U.S. lawmakers were more forthright.
"It's time for the (Obama) administration to focus more intensively on China's
cheating and label the country a currency manipulator,"
Democratic Senator Bob Casey, a member of the Senate Finance Committee, said
in a statement.
A cheaper yuan will help Chinese exports by making them less expensive on
overseas markets.
The People's Bank of China (PBOC) called the move a "one-off depreciation".
"Since China's trade in goods continues to post relatively large surpluses,
the yuan's real effective exchange rate is still relatively strong versus
various global currencies, and is deviating from market expectations,"
the central bank said.
"Therefore, it is necessary to further improve the yuan's midpoint pricing
to meet the needs of the market."
