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Treasury's Lew: US to Ensure Dollar Remains Leading Reserve Currency

Image: Treasury's Lew: US to Ensure Dollar Remains Leading Reserve Currency
(AP)

Tuesday, 01 Dec 2015 11:05 AM

Treasury Secretary Jacob J. Lew said the U.S. intends to ensure the dollar stays the world’s leading reserve currency a day after the International Monetary Fund elevated the Chinese yuan into a basket alongside the dollar, euro, yen and pound.

The dollar “remains the reserve currency of the world for a good reason,” Lew said in a Bloomberg Television interview Tuesday in Washington when asked if the U.S. would consider converting any of its foreign-exchange reserves to yuan.

“We’re determined to run a U.S. economy that continues to be a strong, safe and secure economy that makes that the case in the future.”

While the U.S. supported the IMF decision, “we’ve also had long, ongoing discussions with China about their currency practices,” he said.

“They’ve made commitments to us that they will not intervene in ways that are unfair. And those are important commitments, and they know we’re going to hold them to those commitments.”

The remarks suggest that the Obama administration isn’t yet convinced that China has completely allowed markets to determine the yuan’s value, despite Monday’s approval by the IMF, which puts the currency in the Special Drawing Rights basket. The fund’s decision “reflected a long study by the IMF technical team” and the yuan met the requirements for inclusion, Lew said.

Lew also said that the Dodd-Frank law of 2010 has made the financial system “safer and sounder.”

The Treasury has encouraged financial regulators to apply flexibility in enforcement “to the greatest extent that they can, so that they can be sensitive to the differences in risk” among varying sizes of institutions.

He urged caution in rolling back “some of the core protections that have made our system safer and sounder.”


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Treasury Secretary Jacob J. Lew said the U.S. intends to ensure the dollar stays the world's leading reserve currency a day after the International Monetary Fund elevated the Chinese yuan into a basket alongside the dollar, euro, yen and pound.The dollar "remains the...
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2015-05-01
Tuesday, 01 Dec 2015 11:05 AM
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