Dec 05 2007
Paulson Continues Beating Yuan Drum
U.S. Treasury Secretary Henry Paulson said the Yuan isn’t appreciating fast enough to reduce the protectionist effects of an artificially low currency.
“A more flexible currency is especially important now, when the risks of inflation are clearly rising in the Chinese economy,” Paulson said in a speech to the Asia Society in Washington and Bloomberg reported.
The Yuan has appreciated about 6% against the dollar in the past year. (Maybe the U.S. should just weaken the dollar some more so that China can catch up!).
China has been growing great guns, as Bloomberg points out: China’s economy, the world’s fourth largest, expanded 11.5 percent in the third quarter from a year earlier. The central bank has raised interest rates five times this year to curb rising stocks, property prices, an acceleration in fixed-asset investment, and the highest inflation in a decade.
Paulson has been complaining about China’s currency for more than a month now. Read our last story on it.
French President Nicolas Sarkozy has also been vocal on a loser Yuan. Read our story on it.
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