Yellen's Stance on Currency Manipulation

U.S. Treasury Secretary Janet Yellen emphasizes a strong U.S. response to currency manipulation. She assures the dollar's stable reserve currency status and advocates for market-driven value. Amid U.S.-China tensions, she stresses transparent communication and policies to maintain economic stability.

U.S. Treasury Secretary Janet Yellen has warned that the U.S. would react decisively against any attempts by countries to manipulate their currencies for competitive gain. In an interview on Bloomberg Television, Yellen emphasized that no current market intervention threatens the dollar's standing as the world's reserve currency.

When questioned about the likelihood of a return to policies like the 1985 Plaza Accord to devalue the dollar, Yellen highlighted that the Biden administration supports a market-determined currency value. She underscored disapproval of any country attempting to gain an unfair advantage through currency manipulation.

These statements came amidst reports China might consider weakening the yuan by 2025 in response to proposed tariffs by President-elect Trump. The Treasury's recent currency report found no major trading partner manipulation but remains vigilant on China due to its large trade surplus and opaque foreign exchange practices. Yellen stressed the importance of maintaining open communication with Chinese officials to prevent misunderstandings and promote cooperation.

(With inputs from agencies.)