NEW YORK May 16 The top U.S. official for
international economic affairs called on China to do more to
widen its currency band in order to boost Chinese consumption
and help global growth.
"It is imperative that China take additional measures to
increase the flexibility of its exchange rate regime," Lael
Brainard, the Treasury undersecretary for international affairs,
said in remarks prepared for a speech at the Council on Foreign
Relations in New York.
The U.S. Treasury, in its latest currency report last month,
declined to name China a currency manipulator but said the
world's second-largest economy must do more to widen the yuan's
trading band against the dollar.
"China's path toward market determination implies further
widening along with significantly greater transparency about
reserves and intervention," Brainard said on Thursday.
Many U.S. lawmakers have accused China of deliberately
keeping the yuan undervalued to gain a trade advantage. But
efforts to take a stronger stance on China's currency moves have
faded over the past year due to an increase in the value of the
yuan, a big drop in China's global trade surplus and a rise in
labor costs that has made Chinese products less competitive.