Posts

Showing posts from April 7, 2010

Obama's juggling act on China's currency

Business Times - 08 Apr 2010


Obama's juggling act on China's currency

By LEON HADAR
WASHINGTON CORRESPONDENT

THE decision by the Obama Administration to delay issuing a report that might have identified China as a 'currency manipulator' was a smart move. It stems from both geo-strategic considerations - the need to co-opt the Chinese into a united international coalition in dealing with Iran's nuclear programme - as well as from the recognition that behind-the-scenes bilateral negotiations between the American and the Chinese, including a series of trade-related meetings scheduled through May and June, could bring about some progress on China's currency. A tough American stand would only ignite a costly Sino-American diplomatic and economic crisis.

US Treasury Secretary Timothy Geithner made the decision over the weekend, explaining that he was going to wait a while before he announced whether or not he thought China was officially manipulating its currency.

Chi…