China will no longer be labeled a currency manipulator, the Treasury Department announced, just two days before President Trump and Vice Premier Liu He are set to sign "phase one" of a long-awaited trade deal.
What happened: China was added to the list just five months ago after its government allowed the yuan to slip below a 7-to-1 dollar ratio for the first time in more than a decade.
Between the lines: The yuan lost value largely because of the Trump administration's trade war and threats of further escalation as China abandoned its efforts to hold that level.
- It had been working to strengthen, rather than weaken, its currency in recent years.
Reality check: The change in designation also makes little sense given where China's yuan was trading before the label was applied and when it was removed.
- The currency opened at 6.895 yuan per dollar on Aug. 2, the last trading day before the "currency manipulator" designation was made on Aug. 5.
- It closed at 6.893 yuan per dollar on Monday when the label was removed.