US Senator slams Obama on Yuan report
US Senators have criticised the Obama Administration`s report that absolved China of manipulating its currency, saying the only remedy available for the Congress is to pass legislation against the issue.
Washington: US Senators have criticised the Obama Administration`s report that absolved China of manipulating its currency, saying the only remedy available for the Congress is to pass legislation against the issue.
"The Executive branch seems to be ineffective or unable to alter Chinese currency policy," Senator Lindsey Graham said in a statement.
Graham`s statement comes a day after the Department of Treasury in a report to the Congress stated that China is not manipulating its currency, but remains undervalued.
"This report reinforces the only remedy available is for Congress to pass legislation addressing currency manipulation. The distortion of the Chinese currency has gone on too long and cost too many American jobs," Graham said.
"What matters is how far and how fast the renminbi appreciates," Treasury Secretary Tim Geithner said on Thursday after the release of the semi-annual report, which was delayed by three months.
Renminbi is another name for the Chinese currency.
"We will closely and regularly monitor the appreciation of the renminbi and will continue to work towards expanded US export opportunities in China that support employment in the United States, in close consultation with Congress," Geithner said.
The report concludes that the Chinese currency remains undervalued.
On June 19, China took the significant step of ending its peg to the dollar and allowing its exchange rate to appreciate in response to market forces.
The step was welcomed by the Obama Administration. However, Graham termed these as cosmetic changes. "China recently made minor changes in currency policy. These were more political gestures, not true reform," he said.
"It is very clear to me the only way America can effectively deal with the Chinese government manipulation of their currency is for Congress to act," he added.
"Both Republican and Democratic Administrations have refused to state the obvious - China manipulates its currency to produce an advantage in the marketplace. Their advantage comes at the expense of American workers and other nations," the Senator said.
Several other Senators, too, have expressed disappointment over the latest US Treasury report on Chinese currency manipulation.
"Chinese currency manipulation undermines Ohio workers, Ohio manufacturers, and Ohio jobs. It`s clear that the undervaluation of the Yuan allows for cheap Chinese imports to undermine American-made products," influential Democratic Senator Sherrod Brown said.