The long-awaited signing of the phase one trade deal is almost completed. Obviously, the People’s Bank of China has done its  best to comply with the requirements set by the US. In particular, China’s central bank has stood back from intervention in yuan’s exchange rate at the beginning of this year ahead of the anticipated signing of the phase one trade agreement with the US. Previously, Washington accused China of manipulating its currency exchange rate but removed it from the list of currency manipulators just two days before trade negotiations.  Today, the renminbi’s value is rapidly growing as the Chinese regulator refrained from any interventions. The trade deal includes a clause prohibiting any kinds of currency manipulations form the regulatory bodies. Experts think that this part of the agreement will be largely based on the principles of the USMCA  - United States-Mexico-Canada Agreement - which requires its participants to “refrain from competitive devaluation.” It also helps increase transparency and enhance information exchange on government’s transactions, including the ones in the foreign exchange market. Washington is pleased with China’s decision. However, there is no guarantee that China’s central bank will stay firm with its decision not to intervene since its national currency is soaring. Beijing does not want the yuan to appreciate too much as it may affect its exporters, especially when the imposed US tariffs are still in place.