The US Department of Tsy is set to..........>

US TSYS: The US Department of Tsy is set to release its semi-annual fx report

this week that could name China as a currency manipulator. Since the 1988 Trade

Act was passed, three countries have been named currency manipulators; Korea and

Taiwan in 1988, Taiwan and China in 1992, then China again in 1994. The

Government Accountability office reported that all three countries made,

"substantial reforms to their foreign exchange regimes"(GAO 2005,14). When China

was labeled a currency manipulator in the 2nd half of 1991, the country made

several changes over their 5, 6-month periods, they were continuously cited;

1)Current account turned from negative in 1993 to small surplus in 1994

2)Bilateral surplus projected to be $28.7 billion for 1994 3)Foreign exchange

reserves $39.8 billion, can cover 5 months of imports 4)Unified the dual

exchange rate regime and liberalized domestic firms' access to foreign exchanges

in 1994 5)Government approval of foreign exchange purchases by foreign-funded

enterprises remained 6)Treasury determined that China was not manipulating

exchange rate but maintained capacity to do so in the future(GAO-05-351

International Trade).