By John Brinsley
Dec. 10 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson refrained from accusing China of unfairly managing its currency, while reiterating his call for a faster rate of appreciation, in his final semiannual report on foreign-exchange policies.
“The pace of appreciation in early 2008 needs to be resumed,” the report said. “Treasury continues to use every opportunity to impress upon Chinese authorities the importance and urgency of exchange-rate reform.”
The report came less than a week after Paulson participated in the fifth round of the U.S.-China Strategic Economic Dialogue talks in Beijing. The Treasury chief pressed China to let the yuan gain after the central bank Dec. 1 allowed the currency’s biggest drop since the end of a fixed peg in 2005.
Today’s report was released by the Treasury in Washington. The last time a country was branded as a manipulator was China in 1994.
By law, the Treasury has to enter direct talks with a country deemed to be manipulating its currency, and also seek redress through the International Monetary Fund.
To contact the reporter on this story: John Brinsley in Washington at jbrinsley@bloomberg.net
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