Treasury Secretary Janet Yellen has said that the United States (US) will take swift action against any country that tries to manipulate its currency to gain a competitive advantage.
The warning comes amid concerns that some countries may try to weaken their currencies to counter potential tariffs imposed by the US.
Yellen stressed that the US will not tolerate any country that tries to devalue its currency to make its exports cheaper and more attractive to other countries.
She also explained that the US believes in a free market system, where the value of a currency is determined by market forces, not by government intervention.
The warning is seen as a message to countries like China, which has been accused of manipulating its currency in the past.
China has considered allowing its currency, the yuan, to weaken by 2025 to counter potential tariffs imposed by the US.
Yellen also stressed the importance of maintaining open channels of communication with countries like China to avoid misunderstandings and encourage discussions on policy disagreements and areas of mutual interest.
He believes this approach will help avoid unnecessary tensions and promote a more stable global economy.
