China has rejected the deadline that the United States Treasury gave it to revalue its , and suggested that the U.S. worry about its own internal problems first.
The Treasury told China that it has six months to make its currency more flexible, or it will be named a “manipulative trading partner” in the Treasury’s report to congress.
China rejected this demand saying that U.S. and European curbs on its textile imports are unfair. Congress is becoming impatient with the way China is handling its currency, and with the U.S. Treasury for the way it has been handling the situation with the country.
The U.S. Treasury has complimented China in the past for taking steps to improve its financial system allowing for more flexibility in the country’s currency. Now the Treasury and Congress want to see it happen. Stuff writes:
China has long said that it intends to unshackle the yuan, also known as the renminbi, which has been pegged near 8.28 to the dollar since the 1997-98 Asian financial crisis.
But a senior official reaffirmed an assertion on Monday by Premier Wen Jiabao that China would not be bulldozed into acting.
“We agree with many of you that a more flexible regime would be better for China’s economy. But there is no timeframe for such a change as conditions are not ready yet,” Wei Benhua, deputy chief of China’s foreign exchange regulator, told a trade conference in Singapore.
“It is now widely accepted that China is now ready and should move without delay in a manner and magnitude that is sufficiently reflective of underlying market conditions,” said the Treasury.
The Treasury will be keeping a close watch on China’s currency practices until the six-month deadline comes, but Chinese leaders who say the country is working toward a more flexible currency say that a deadline cannot be placed on it.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
