The Chinese yuan is rising again, but too slowly for America’s comfort and there were signs today patience with Beijing is wearing thin, despite China warning that putting pressure on it could backfire.
The US Secretary of the Treasury Timothy Geithner has made some of his sharpest comments yet in testimony to the Senate Banking Commission about China’s exchange rate, currency, and trade policies.
“We are concerned, as are many of China’s trading partners, that the pace of appreciation has been too slow and the extent of the appreciation too limited. We will take China’s actions into account, as we are preparing our next foreign exchange report, and we are examining the important question of what mix of tools – tools available to the US – and what multilateral approaches might help encourage the Chinese authorities to move more quickly,” he said.
Geithner added China was continuing to “massively intervene” on the money markets to weaken the Yuan, and that it was “high time” Beijing changed its economic model to allow “the strong and sustainable global economic growth we all need.”