Geithner Says Undervalued Yuan Threat to Growth

Describing China’s policies as having the “effect of keeping the Chinese currency substantially undervalued”, US Treasury Secretary Timothy Geithner said in a speech in Washington that the devalued yuan threatened growth.

“If China does not allow the currency to appreciate more rapidly, it will run the risk of seeing domestic inflation accelerate and face greater risk of a damaging rise in asset prices, both of which will threaten future growth,” Geithner said.

Source: Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.