Despite China’s decision to continue regulating the yuan regardless of its effect on the global economy several months ago, U.S. Treasury Secretary Timothy Geithner is now confident that the nation will reconsider the global consequence of their currency. Geithner expressed confidence that China would recognize how a more flexible currency would benefit them and the greater recovery which Geithner called “quite strong now.”
Geithner, in a Tuesday Interview with India's NDTV, expressed that the revaluation of the yuan is "China's choice" adding that he is “confident that China will decide it's in their interest to resume the move to a more flexible exchange rate, that they began some years ago and suspended in the midst of the crisis.”
Monday, the U.S. once again called on China to deregulate their currency as the trade gap between the U.S. and China continue to expand. Legislators in Washington cautioned that action would against the nation in terms of a new classification for China’s global trade status. President Obama has thus far been avoiding classifying China as a currency manipulator despite the continued urging of Congress.
Geithner's interview aired around the same time as comments from a Chinese foreign ministry spokeswoman denying Chinas currency manipulation altogether and insisting that the U.S. trade deficit with China did not depend on the yuan's value.
"We're working with countries around the world to make sure there is a level playing field globally so that our companies, as they compete globally, are competing on a fair basis. That's the general imperative and it goes beyond China," Geithner said.
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