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US Treasury removes currency manipulator label on China

The United States on Monday removed the currency manipulator label it imposed on China last summer, in a sign of easing tensions between the economic powers after nearly two years of conflict.
Just two days before President Donald Trump is set to sign a "phase one" trade agreement with China, the US Treasury said in its semi-annual report to Congress that the yuan has strengthened and Beijing is no longer considered a currency manipulator.
Although Treasury refrained from slapping the label on China in its report last May, Trump in August angrily accused Beijing of weakening its currency "to steal our business and factories," re-stating a long-standing grievance.
Chinese authorities in August allowed the yuan to fall below 7 to the dollar, sending shudders through stock markets at the time and stoking Trump's ire.
"Over the summer, China took concrete steps to devalue its currency," also known as the renminbi (RMB), and those moves "left the RMB at its weakest level against the dollar in over 11 years," Treasury said.
However, more recently it strengthened to 6.93 to the dollar. Treasury said the new trade pact addresses currency issues.
"In this agreement, China has made enforceable commitments to refrain from competitive devaluation and not target its exchange rate for competitive purposes," Treasury Secretary Steven Mnuchin said in a statement.
However, that commitment is identical to the one Beijing has long made as part of the Group of 20 major global economies.
China's foreign ministry on Tuesday said it had "never been a currency manipulator," and that the United States' decision was "in line with the facts."
"We have not and never will use the currency exchange rate as a tool to address trade conflict," foreign ministry spokesman Geng Shuang said at a regular press briefing, adding that the International Monetary Fund had found the yuan's exchange rate "in line with the economy's fundamentals."
Though the semi-annual currency report always gains attention as a key sign of relations between the powers, the currency manipulator designation was largely symbolic.
The label calls for the US Treasury committed to working with the IMF to "eliminate the unfair competitive advantage" created by China's alleged actions and to consult with Beijing about the matter.
As part of the trade deal, "China has also agreed to publish relevant information related to exchange rates and external balances."
However, many economists questioned the decision to label China as a manipulator in the first place.
"China shouldn't have been designated to start with. Small current account surplus/GDP; scant intervention," Mark Sobel, a former Treasury official, said on Twitter.
While he acknowledged the large trade surplus, he said: "economists disregard those."
"RMB fell in response to Trump's tariffs. The designation was blatant/errant political act," Sobel tweeted.
And China expert Martin Chorzempa said the announcement was getting "way more attention than it should because it matters only on the most superficial symbolic level."
Mnuchin said the phase one deal is significant and "will lead to greater economic growth and opportunity for American workers and businesses."
However, Treasury said Beijing still needs to take steps "to stimulate domestic demand and reduce the Chinese economy’s reliance on investment and exports."
Top Chinese trade envoy Liu He arrived Monday in Washington on Monday ahead of Wednesday's expected signing of the agreement.
After multiple rounds of tariffs, the US trade deficit in goods through November 2019 was running at over $320 billion, which is about $62 billion below the same period of 2018.
Chinese customs data showed Tuesday that China's surplus had dropped 8.5 percent in 2019 to $296 billion.
"Treasury remains disturbed by the persistent and excessive trade and current account imbalances that mark the global economy," the report said.
The US Trade Representative's Office announced over the weekend that as part of the initial trade deal, Washington and Beijing will hold "at least bi-annual" meetings -- something that previous administrations did for years but that Trump scrapped in favor of a more aggressive approach.
Mnuchin and Federal Reserve Governor Jerome Powell are also will conduct macro-economic meetings with top Chinese officials "regularly," USTR said.
The currency report had eight other countries on the "monitoring list" due to concerns about their currency practices: Germany, Ireland, Italy, Japan, South Korea, Malaysia, Singapore, Switzerland, and Vietnam.
source: AFP
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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