China Says G20 Should Not Discuss Currency Imbalance

Dave Johnson

Treasury Secretary Geithner delayed a required April 15 declaration that China is manipulating its currency, saying it will instead be taken up by the G20. China has now warned other G20 countries that the G20 meeting in Toronto next week is not the appropriate place to discuss their currency manipulation, saying that would be “finger-pointing.”

Reuters: China warns finger-pointing could derail G20,

Finger-pointing at the G20 will be self-defeating for an international forum that should be focused on coordination, not criticism, of economic policies, a senior Chinese government official said.

Underlining the extent to which China wants to shield its currency policy from censure, a second official said that the Group of 20 summit in Canada on June 26-27 was not the right place for discussing “the yuan issue.”

AP: China says G-20 wrong place to discuss yuan issue,

“We believe it would be inappropriate to discuss the renminbi exchange rate issue in the context of the G-20 meeting,” Qin told a regular news briefing, referring to the Chinese currency, which is also known as the yuan.
Qin said China expects the G-20 talks will mainly focus instead on the European Union debt crisis and ways countries can cooperate to speed up the global economic recovery.

sinchew.com: China issues yuan warning as Hu heads to G20

Chinese President Hu Jintao will pay a state visit to Canada next week ahead of the G20 summit in Toronto, the government said Thursday, while insisting he was not open to debate about currency rates.

. . . Qin reiterated that China opposed any pressure over its currency policy, after US lawmakers pledged to launch legislation to punish Beijing over its exchange rate system.

“We want the international community to take an objective view on the RMB (yuan) exchange rate and work together to overcome the difficulties so as to maintain momentum of the recovery of the economy,” he told reporters.

Financial Times: China warns G20 currency critics,

China warned the other members of the Group 20 leading economies not to use the summit later this month as an excuse to criticise its currency policy, saying it would be damaging to the world economy.

Taking pre-emptive action ahead of the G20 meeting in Toronto on June 26-27, Chinese officials said on Thursday that the summit was not the correct place to discuss the level of the renminbi and cautioned against an outbreak of “finger-pointing”.

After delaying the required April 15 declaration for the G20, and now with China saying it should not be discussed at the G20, what next? The Senate needs to step in and address the currency issue ASAP.

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