Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

U.S. to press China on currency

By Charles Riley, staff reporter


NEW YORK (CNNMoney) -- U.S. officials will continue to press China over the manipulation of its currency at this week's G-20 summit, a senior Treasury Department official said Tuesday.

The two-day summit of central bank governors and finance ministers, held in Paris, will take place against the background of a recovering world economy.

But the U.S. remains concerned over the impact of Chinese currency policy on other recovering economies, and officials will make the case that China should allow its currency to appreciate at an accelerated rate, the official said.

China has long been criticized by the United States for intervening in the currency market to depress the value of its currency, the yuan. This policy, critics say, gives Chinese exporters an unfair advantage and has created global trade imbalances.

Those imbalances have been amplified in recent months, as food and energy prices soar in developing economies.

While traveling in Brazil last week, Treasury Secretary Tim Geithner, who will attend the G-20 summit, took a thinly veiled jab at China. The massive cash flows into the Brazilian economy are being "magnified" by economies "with tightly controlled exchange rate regimes," he said.

To be sure, China has allowed the yuan to appreciate somewhat. As of late January, the yuan has risen 3.7% against the dollar since the Chinese government loosened its peg in June, according to the Treasury Department.

On Tuesday, a Treasury official acknowledged the progress, but said further action is needed.

"It's an issue where we are seeing progress," the official said. "It's important to continue to engage so that pace continues." To top of page

Index Last Change % Change
Dow 16,374.76 23.38 0.14%
Nasdaq 4,733.50 -16.48 -0.35%
S&P 500 1,951.13 2.27 0.12%
Treasuries 2.17 -0.02 -1.14%
Data as of 9:59pm ET
Company Price Change % Change
Bank of America Corp... 15.94 0.09 0.57%
Apple Inc 110.37 -1.97 -1.75%
Freeport-McMoRan Inc... 10.13 0.23 2.32%
Intel Corp 29.08 0.48 1.68%
Frontier Communicati... 5.52 0.31 5.95%
Data as of 4:01pm ET
Sponsors

Sections

Americans are transforming how they eat -- paying more attention to the origins of their food and how it's made. And Kimbal Musk is at the forefront of a movement that is accelerating the rate of change. More

The Labor Department releases its August jobs report on Friday, and it will have big implications for the Federal Reserve. More

The BauBax travel jacket, with 15 built-in features, needed $20,000 on Kickstarter, but got $9 million. More

Pimco's famous fund once managed by star manager Bill Gross has less than $100 billion in management for the first time since 2007. More