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-----Original Message-----
From: MeLinda MeLisa <[email protected]>
Sender: [email protected]
Date: Fri, 11 Feb 2011 12:34:27 
To: <[email protected]>
Reply-To: [email protected]
Subject: [StockForex] U.S. Not Satisfied With Chinese Yuan

U.S. Not Satisfied With Chinese Yuan


Friday, February 11, 2011 - http://marketpin.blogspot.com/


U.S. Not `Satisfied' With China's Progress on Boosting Yuan, Brainard Says



MarketPin News - The Obama administration isn’t satisfied with China’s
progress in strengthening the yuan and is “intensely focused” on the
issue, a Treasury Department official said.

“We’ve made progress on the currency issue but that does not mean we
are satisfied,” Lael Brainard, the Treasury’s undersecretary for
international affairs, said in a speech in Washington today.

In a report to Congress on Feb. 5, the Treasury Department said China
had made “insufficient” progress in allowing its currency to rise. The
report declined to brand China a currency manipulator.

“We will remain intensely focused on this issue to ensure accelerated
progress to address the remaining substantial undervaluation,”
Brainard, who is Treasury Secretary Timothy F. Geithner’s top
international adviser, told the U.S.-China Business Council. She said
the yuan has strengthened 3.7 percent against the dollar in nominal
terms since June. Taking inflation in China into account, the real
bilateral exchange rate is rising even more, she said.

The yuan strengthened today, approaching a 17-year high, as U.S.
lawmakers introduced legislation aimed at pushing China to let its
currency strengthen faster. China is committed to the gradual
liberalization of its exchange-rate policy, Foreign Ministry spokesman
Ma Zhaoxu said at a briefing today in Beijing.


=China Imports=
U.S. Representative Sander Levin of Michigan, the top Democrat on the
House Ways and Means Committee, and Democratic Senator Sherrod Brown
of Ohio introduced a bill today that’s almost identical to one passed
by the House last year that would let U.S. companies petition for
duties on imports from China to compensate for the effect of a weak
yuan. That measure died when the Senate didn’t vote before the end of
the year.

The administration’s objectives on getting China to boost its exchange
rate “are very much similar” to the goals of the House bill introduced
last year, Brainard said in response to a question.

“We’re seeing progress” from China, she said. “We want to see more
progress. We still believe that the Chinese currency is substantially
undervalued. We’re going to continue using the mechanisms we have.”

The Obama administration and U.S. lawmakers say China’s currency
policy gives its exporters an unfair competitive advantage. China had
a $252 billion trade surplus with the U.S. in the first 11 months of
2010, according to Commerce Department data.


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