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US to talk floating forex rate with China soon
Bangkok, Oct 24: A TEAM of Bush administration experts plans to start consultations with China within weeks aimed at moving the Asian giant toward a floating exchange rate that could benefit American manufacturers, officials said.
Bangkok, Oct 24: A TEAM of Bush administration experts plans to start consultations with China within weeks aimed at moving the Asian giant toward a floating exchange rate that could benefit American manufacturers, officials said.
No major breakthroughs are expected in the near-term after Chinese president Hu Jintao rebuffed US President George W Bush’s appeal for a rapid shift in his country’s semi-fixed currency regime.
But in talks on the sidelines of an Asia-Pacific summit, Hu personally signed off on plans to set up an expert group drawn from both governments to study moving more quickly toward floating China’s yuan, according to US officials.
“The expert group is expected to meet this fall,” an administration official said. Creation of the group could help give political cover to Bush, who has little else to show for his efforts lobbying China — as well as Japan — to let the market determine the value of their currencies.
But in talks on the sidelines of an Asia-Pacific summit, Hu personally signed off on plans to set up an expert group drawn from both governments to study moving more quickly toward floating China’s yuan, according to US officials.
“The expert group is expected to meet this fall,” an administration official said. Creation of the group could help give political cover to Bush, who has little else to show for his efforts lobbying China — as well as Japan — to let the market determine the value of their currencies.
Bush’s goal is to convince Beijing to adopt a floating exchange rate that would allow the Chinese yuan to rise against the dollar — making US manufacturers more competitive. Bureau Report