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Showing posts from June 23, 2010

Doubts mount over impact of Beijing's yuan reform

Business Times - 24 Jun 2010


Doubts mount over impact of Beijing's yuan reform

By LEON HADAR
WASHINGTON CORRESPONDENT

FOR close to a year, Obama administration officials have resisted pressure from the US Congress to punish China for refusing to adjust its tightly controlled currency, the yuan. At the same time, US President Barack Obama and his aides, led by Treasury Secretary Timothy Geithner, have been working behind the scenes to persuade the Chinese government to move in that direction.

And now, it seems that Washington's exercise in quiet diplomacy has proved to be successful after China announced on Saturday that it decided to take the yuan off its peg to the US dollar and let it trade freely. The Chinese made the announcement against the backdrop of growing anti-China sentiment on Capitol Hill and on the eve of the summit of the Group of 20 economies in Canada at the end of this week.

The G-20 members have agreed in their last two summits that any serious response to t…