US criticises 'inflexible yuan'

The US Treasury has criticised China for what it described as the lack of flexibility of the Chinese currency, the yuan.

It also criticised the rapid build-up of China's foreign exchange reserves in a report to the US Congress.

The Treasury said it had serious concerns about the rigidity of China's exchange rate.

But it stopped short of accusing China of currency manipulation, a politically contentious issue in the past.

"Both the rigidity of the renminbi and the reacceleration of reserve accumulation are serious concerns which should be corrected to help ensure a stronger, more balanced global economy consistent with the G-20 framework," the Treasury report said.