Tags: US | Delays | Decision | China | Currency

US Delays Report on Currency Practices in China

Friday, 15 Oct 2010 01:06 PM

The Obama administration delayed a much-anticipated decision on whether to label China as a currency manipulator until after the U.S. congressional elections and a Group of 20 summit in November.

The U.S. Treasury said on Friday that the November 11 gathering in Seoul would give world leaders an opportunity to look at how best to rebalance the global economy.

The United States and the European Union accuse China of keeping the yuan artificially low to boost exports, undermining jobs and competitiveness in Western economies.

The Treasury's decision to delay its semi-annual currency report reflects a desire by the Obama administration to pursue a multilateral approach to resolving the dispute with China rather than provoke a confrontation with its biggest creditor.

Such a stand-off could lead to a trade war and affect long-term interest rates at a time when the United States is struggling to emerge from the worst recession since the 1930s.

The Treasury said in a statement that rebalancing the global economy was not just the responsibility of the United States and China.

The decision to delay the Treasury report appears to have been taken at the last minute. Industry sources had been primed to expect the report by 1 p.m. EDT (1700 GMT) on Friday.

The delay swiftly drew fire from two Democratic senators, who accused the Obama administration of "treating the symptom but not the disease," referring to an earlier announcement that the United States will investigate whether Chinese support for its clean energy sector violates international trade rules.

Treasury Secretary Timothy Geithner told Congress last month he would rally other G-20 nations to put pressure on China to let the yuan rise faster.

G-20 finance ministers meet on October 22, with the leaders summit following on November 11.

"The Treasury will delay the publication of the report on international economic and exchange rate policies in order to take advantage of the opportunity provided by these important meetings," it said in the statement.

© 2017 Thomson/Reuters. All rights reserved.

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The Obama administration delayed a much-anticipated decision on whether to label China as a currency manipulator until after the U.S. congressional elections and a Group of 20 summit in November. The U.S. Treasury said on Friday that the November 11 gathering in Seoul...
US,Delays,Decision,China,Currency
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