Treasury Secretary Jack Lew, in an exclusive interview with CNBC, diplomatically but firmly criticized China’s handling of its currency devaluation. He also said the recent trading turmoil isn’t a major concern at this point, but “I keep my eye on the market.”
Regarding China, whose devaluation last month helped set off the plunge in world markets, Lew said: “They have to understand, and I make this point to them quite clearly, that there’s an economic and a political reality to things like exchange rates.” His comments follow those of other officials who have been critical of the way China went about devaluing its currency.
“They need to understand that they signal their intentions by the actions they take and the way they announce them. And they have to be very clear that they’re continuing to move in a positive direction. And we’re going to hold them accountable,” said Lew, who will be participating in a meeting of G-20 financial ministers and central bankers Friday in Turkey.