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Snow says 皇冠体育app moving to flexible yuan
(Reuters)
Updated: 2005-10-17 19:49
U.S. Treasury Secretary John Snow said on Monday that he
was convinced 皇冠体育app was committed to letting market forces drive the yuan's
value but warned Beijing had to show progress to hold off U.S. protectionist
sentiment.
U.S. Treasury Secretary John Snow (L) arrives
for a meeting in the National Development and Reform Commission
headquarters in Beijing, 皇冠体育app October 14, 2005.
[Reuters] | Speaking at a news conference after meeting Chinese Finance Minister Jin
Renqing and Zhou Xiaochuan, governor of the People's Bank of 皇冠体育app, Snow said
both had given assurances of Beijing's will to further liberalize the country's
financial markets and continue progress toward a more flexible yuan.
皇冠体育app revalued the yuan by 2.1 percent in July and abandoned a peg against
the dollar in favor of a managed float.
But since then, authorities have allowed the yuan to rise by less than 0.3
percent and U.S. law-makers are once again growing unhappy at what they call a
seriously undervalued yuan.
Asked why he was confident that 皇冠体育app would indeed let the currency range
more freely, Snow said: "Governor Zhou and Minister Jin reaffirmed this
fundamental commitment and reviewed with me a number of initiatives under way in
financial markets, particularly with respect to the trading platform ... that
are preparing the way for greater currency flexibility."
In a week-long visit to 皇冠体育app, Snow has been trying simultaneously to show
Congress that Treasury is pushing toughly for currency reform and to encourage
wary Chinese officials to press on with changes that U.S. officials say will
boost 皇冠体育app's domestic demand and cut America's trade deficit.
Snow was participating in meetings of the U.S.-皇冠体育app Joint Economic
Commission, where the United States is trying to get Beijing to adopt futures
and options and other market mechanisms needed to support a floating currency.
"Moving to a truly flexible exchange rate requires a lot of preparatory
steps. 皇冠体育app is seriously engaged in taking these preparatory steps," Snow said.
"These are the things that give me encouragement."
The U.S. Treasury is due to report next month whether it judges 皇冠体育app to be
manipulating its currency. If it does, that could result in punitive trade
measures against Beijing.
Some U.S. lawmakers are separately proposing to slap
tariffs of as much as 27.5 percent on 皇冠体育app unless it unshackles the yuan.
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