Geithner: market should have more say on yuan rate

WASHINGTON (BestGrowthStock) – It is important for China to allow the market to play a bigger role in setting the value of its currency, U.S. Treasury Secretary Timothy Geithner said on Thursday.

The Obama administration has been pressing China for months to allow the yuan to resume appreciation, with some economists estimating the currency is as much as 40 percent undervalued, giving Chinese firms a huge competitive advantage.

“As China moves to increase growth from domestic consumption sources, shifts to a strategy less dependent on exports to the United States, which is very important to us, we think it’s important that they renew the process of reforming their exchange rate,” Geithner said.

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(Reporting by David Lawder)

Geithner: market should have more say on yuan rate