BEIJING (Reuters) - China has made “very, very little” progress on letting the exchange rate of the yuan reflect market forces, Treasury Secretary Timothy Geithner said in remarks published in the Wall Street Journal on Monday.
In an interview conducted on Friday, Geithner was asked if he was satisfied with China’s progress on the yuan. He replied: “Of course not.”
“China took the very important step in June of signaling that they’re going to let the exchange rate start to reflect market forces. But they’ve done very, very little, they’ve let it move very, very little in the interim. It’s very important to us, and I think it’s important to China, I think they recognize this, that you need to let it move up over a sustained period of time.”
Geithner is due to testify before the House of Representatives Ways and Means Committee on Thursday to present the Obama administration’s latest view of what the United States should do to press China to reform its exchange rate practices.
In the transcript of his comments posted online by the Wall Street Journal, he did not address that issue. The transcript is availablehere .
Geithner’s Treasury Department, in three semi-annual reports since President Barack Obama took office, has declined to formally name China a currency manipulator.
Commenting on the state of the U.S. economy, he said it was “healing” but overall growth and job growth were not as fast as the administration would like.
The yuan has risen 0.84 percent since June 19, when the PBOC announced the abolition of a two-year peg to the dollar.
Editing by Ken Wills
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