US considering a currency agreement with China as part of partial trade deal - Bloomberg

Omkar Godbole FXStreet Contributor

The news is crossing the wires via Bloomberg that the US is considering entering into a currency agreement with China as a part of a partial trade deal.

The US in August officially labeled China a currency manipulator, accusing it of using yuan to gain “unfair competitive advantage” in trade.

China's Yuan (CNY) has dropped more than 3.5% against the US Dollar in 2019. More importantly, China allowed Yuan to depreciate beyond 7 per US Dollar, drawing Washington's ire.

Key points (Source: Bloomberg)

White House is looking at rolling out a previously agreed currency pact with China as part of an early partial deal that could also see a tariff increase next week suspended, according to people familiar with the discussions.

The currency accord -- which the U.S. said had been agreed to earlier this year before trade talks broke down -- would be part of what the White House considers to be a first-phase agreement with Beijing.

It would be followed by more negotiations on core issues like intellectual property and forced technology transfers, the people said.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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