US Treasury Secretary Criticizes China’s Currency Policy

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.

via CNBC

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.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza