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U.S. Treasury's Sheets says China yuan needs to show upside 'flexibility'
May 24, 2016 / 7:21 PM / a year ago

U.S. Treasury's Sheets says China yuan needs to show upside 'flexibility'

WASHINGTON (Reuters) - China’s yuan currency will need to demonstrate some upside flexibility along with its recent downward movements if China is to make progress towards achieving a market-determined exchange rate, a senior U.S. Treasury official said on Tuesday.

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee

Nathan Sheets, Undersecretary for International Affairs, said he believed that a market determined exchange rate requires “two-sided flexibility” but most of the yuan’s recent movements have been downward.

“Over the last year or so, we’ve seen more pressures in the market towards (yuan) depreciation, but as economic events in China and the global economy evolve and we start seeing those pressures go in the opposite direction, it will be important that China’s exchange rate manifest that upside flexibility as well,” Sheets told a Brookings Institution forum on bilateral meetings between U.S. and China officials scheduled for June 6-7 in Beijing.

Reporting by David Lawder, editing by G Crosse

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