(Recasts with Lew interview with Bloomberg TV)
WASHINGTON May 9 U.S. Treasury Secretary Jack
Lew said on Friday he would press Chinese officials next week to
allow markets to play a bigger role in determining the value of
China's currency, saying there had been "negative movement" in
In an interview with Bloomberg Television ahead of his
departure for Beijing on Sunday, Lew said China had taken steps
to reform its exchange rate policy but needed to do more to
allow markets to determine the yuan's value.
"They widened their trading band. But we've seen some very
negative movement in the exchange rate in recent months," Lew
said in the interview to be broadcast Friday evening.
"One of the issues that I'm going to bring to them is if
your policy says that the exchange rate can go up and down, you
need to have market signals determining whether it's going up or
The yuan has depreciated in recent months. In April, the
Obama administration warned China, the world's second largest
economy, that the yuan was too weak and expressed doubts over
Beijing's commitment to let market forces determine the
In a semi-annual report to Congress, the Treasury stopped
short of declaring China a currency manipulator, but singled it
out among large U.S. trading partners for its exchange rate
A weak yuan makes Chinese exports cheaper for U.S.
consumers, hurting U.S. producers. It also makes foreign goods
less affordable for Chinese consumers.
Lew also said he planned to encourage China to continue its
economic reforms and open its markets.
In an earlier briefing on Lew's trip, Treasury officials
said the talks also would focus on the need for China to adopt a
domestic consumption-driven economy and protect intellectual
Lew will hold meetings with Chinese officials on Tuesday.
(Reporting by Lucia Mutikani, Michael Flaherty and Tim Ahmann;
Editing by Paul Simao)