Chinese currency exchange policy under scrutiny

China's foreign currency exchange policy has come under scrutiny by the US.

US president Barack Obama has suggested that the Asian country should adopt a "market-orientated" exchange rate policy.

This is after the Chinese government has held its currency the yuan artificially low for 18 months.

The yuan was held down against the US dollar in a bid to increase exports from China.

But last month the country saw a year-on-year rise in its exports of 46 per cent, almost ten per cent higher than analysts' expectations.

However, Su Ning, vice governor of the People's Bank of China, has not taken kindly to Mr Obama's calls to deregulate the yuan, accusing the president of "politicising" the currency issue.

The US Treasury Department is now considering labelling China as a "currency manipulator" in a report next month, according to the BBC.

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Posted by Sarah Pitton