WASHINGTON (MarketWatch) -- China's foreign exchange policy risk "unwinding" some of the progress made in reducing global trade imbalances during the financial crisis, the U.S. Treasury said in its latest report on foreign-exchange trading released Thursday. But the department repeated its finding that China was not formally manipulating its currency. Still "the rigidity of the renminbi and the reacceleration of reserve accumulation are serious concerns which should be corrected to help ensure a stronger, more balanced global economy," the Treasury report said. A number of factors suggest that the Chinese currency remains undervalued, the report concluded. http://www.marketwatch.com/story/globe-at-risk-from-china-forex-policy-treasury-2009-10-15
In a written submission to the Senate Finance Committee, Mr. Geithner said the Obama Administration "believes that China is manipulating its currency." - Jan 2009