US hardens stance on China’s currency rigidity

October 16, 2009 Share Print 0

Maybe the Obama administration hasn’t heard what Soros and Japanese officials are saying regarding the importance of China and Japan in boosting the dollar.

The Obama administration said it had “serious concerns” about the rigidity of the renmimbi yesterday but stopped short of accusing China of manipulating its currency in a closely watched report to Congress, writes Sarah O’Connor in Washington.

The Treasury toughened its language on China in its half-yearly report on exchange rate policies. While acknowledging that Beijing had been important in steadying the global economy, it said recent moves to accumulate more foreign exchange reserves “risk unwinding some of the progress made in reducing imbalances”.

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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.