May 18, 2010Senators say China suppresses IMF yuan criticism
WASHINGTON, A group of nine U.S. senators on Tuesday urged the Obama administration to pressure China to release an International Monetary Fund report they believe shows Beijing manipulates its yuan currency. April 15th ~ US current, proposed law on currency manipulation
The senators, led by Charles Schumer, a New York Democrat, and Lindsey Graham, a South Carolina Republican, said in a letter to U.S. Treasury Secretary Timothy Geithner that he should demand China release the report at an economic summit in Beijing next week.
They said China had suppressed the IMF staff report from the fund's annual Article IV consultation with China last summer. Such staff reports contain assessments of a country's currency policies, but IMF member states can decide whether or not to release them.
"This report could be the smoking gun that confirms that China has been intentionally manipulating its currency to gain an unfair trade advantage," Schumer said in a statement. "The fact that China insists on keeping the report under wraps is reason to believe they have something to hide. The administration should press for the report's release at next week's summit." April 15th Delay ~ US delaying Currencies Report Amid China Dispute ~ 3 months of Important Meetings Coming Up ...
Most countries authorize the IMF to release the staff reports, and China had done so in previous years.
"China's failure to do so in 2009, despite regularly opting for transparency in previous years, is troubling, suggesting that China seeks to suppress any findings critical of China's manipulation of the value of its currency," the senators wrote in the letter.
Geithner, Secretary of State Hillary Clinton and other top Obama administration officials are heading to Beijing for the so-called Strategic and Economic Dialogue with their Chinese counterparts May 24-25. China's yuan exchange rate is expected to be a key topic. May 24-25 ~ Geithner, Clinton to visit Beijing end of May ...
Geithner in March decided to delay a much-anticipated report on whether China deliberately manipulates its currency for trade advantage, choosing instead to try to persuade Beijing to resume more yuan flexibility through a number of bilateral and multilateral meetings this spring and summer. April 15th Delay ~ US delaying Currencies Report Amid China Dispute ~ 3 months of Important Meetings Coming Up ...
Among these are next week's economic talks and meetings in June for the Group of 20 wealthy and developing economies ...
(June 4-5 2010 G20 Finance Ministers in Busan, Republic of Korea, to prepare for the June Leaders’ Summit in Toronto, Canada ~
June 4-5 Next Meeting ~ Text Of G-20 Finance Ministers, Central Bankers’ Statement April 23, 2010 ...)
In March, the IMF said the yuan, also known as the renminbi, was "substantially undervalued" compared with the U.S. dollar in a briefing note to G20 ministers. It has long argued that China should allow its currency to rise in value.
China in mid-2005 began allowing gradual rise of the yuan from around 8.2 to the dollar to about 6.83 by mid-2008. However, it has not budged from that level since then, even though China's growth rate has remained strong.
June 4-5 Next Meeting ~ Text Of G-20 Finance Ministers, Central Bankers’ Statement April 23, 2010 ...)
In March, the IMF said the yuan, also known as the renminbi, was "substantially undervalued" compared with the U.S. dollar in a briefing note to G20 ministers. It has long argued that China should allow its currency to rise in value.
China in mid-2005 began allowing gradual rise of the yuan from around 8.2 to the dollar to about 6.83 by mid-2008. However, it has not budged from that level since then, even though China's growth rate has remained strong.
