The U.S. Treasury Secretary, Scott Benson, stated that the impact of the renminbi exchange rate on Europe is greater than its impact on the United States, as the renminbi has appreciated against the U.S. dollar but depreciated against the Euro. Benson also pointed out that the renminbi is a closed currency controlled by Beijing.
In an interview with Reuters and Bloomberg in Madrid, Benson stated that the tariffs imposed on Chinese imports by the United States are reducing the U.S. trade deficit. Earlier, the U.S. and China held talks on trade and the TikTok issue.
Benson further added that China’s trade with the United States decreased by 14% this year, while trade with Europe increased by 6.9%.
On Monday, September 15th, when asked if he had discussed the depreciation of the renminbi with Chinese Vice Premier He Lifeng, Benson replied, “They haven’t done that to the United States yet. The renminbi has actually strengthened against the U.S. dollar this year. The renminbi is now at a historical low against the Euro, which is a problem for Europeans.”
The renminbi to Euro exchange rate has dropped to a historic low of over 8.4 in recent months, compared to 7.5 at the beginning of 2025. Trade and currency experts say this has fueled a surge in Chinese exports to Europe, exacerbated the EU’s trade deficit with China, and intensified trade tensions between China and Europe.
Meanwhile, the renminbi has slightly appreciated against the U.S. dollar this year, rising from 7.3 in January to 7.1.
When asked if the depreciation of the renminbi is a result of manipulation, Benson replied, “The renminbi is a closed currency. So, they (Beijing) control the exchange rate.”
On July 3rd, in an interview with Bloomberg, Benson stated that it is a fallacy to consider the renminbi as a major global reserve currency because it cannot be freely traded.
He said, “It is a fallacy to think that the renminbi can become a major global reserve currency. It is a currency that cannot be freely exchanged. How can it become a reserve currency when China’s 1.4 billion population wants to move their money out of the country?”
Benson, with decades of experience in hedge fund management, is skilled in forex trading. He stated, “A prerequisite for a reserve currency is the ability to be freely traded, but Beijing maintains control over capital.”