Dollar Diplomacy

Treasury Secretary Geithner has delayed his report to Congress on the Chinese currency hoping to persuade China to appreciate the Yuan soon.

Treasury Secretary Geithner has delayed his report to Congress on the Chinese currency hoping to persuade China to appreciate the Yuan soon. "Geithner, explaining the delay in a statement Saturday, said a series of upcoming meetings, including among officials of the Group of 20 financially influential countries, and with China -- are 'the best avenue for advancing U.S. interests at this time.' Lawmakers from both parties have called on the Obama administration to speak out against China's refusal to let its currency appreciate. China has kept its yuan about 6.83 to the dollar for almost two years. Many U.S. economists say the currency is undervalued by as much as 40 percent. Keeping its currency low makes China's goods cheaper on the world market and more likely to be purchased by other countries. But, analysts say, it hurts American businesses, which cannot then compete."

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