UPDATE 1-US’ Geithner says yuan to have broader int’l role-TV

* Geithner: yuan to have broader int’l role – Bloomberg TV

* Says U.S. “very, very close” to sweeping financial

* Rise in U.S. Treasury yields sign of rising risk
(Adds details, quotes, background)

By David Lawder

MUMBAI, April 7 (BestGrowthStock) – U.S. Treasury Secretary Timothy
Geithner said on Wednesday that China’s yuan currency would
take a broader international role, which he described as a
“healthy, necessary adjustment,” and said the United States was
“very, very close” to sweeping financial reform.

“China’s undergoing a necessary, natural process of basic
development and growth. They’re trying to strengthen the way
markets work in their country,” Geithner said in an interview
with Bloomberg TV in Mumbai.

“They’re trying to develop their financial system, they’re
becoming more open to the world, and with that you’re going to
see their currency take on a broader role internationally.
That’s a healthy, necessary adjustment,” he said in the

His comments came amid a volley of rhetoric over the yuan’s
value between Beijing and Washington over recent days since
Geithner decided to delay a report on whether China manipulates
the yuan’s value for a trade advantage.

China’s foreign (Read more about foreign investment into China) ministry on Tuesday said it never has
manipulated the yuan and that a rise wouldn’t reduce the U.S.
trade deficit with China.

Asked about the timing of the report, which coincided with
U.S. overtures for China’s support on nuclear security issues
related to Iran, Geithner said the U.S. had to pursue many
interests at once.

“That’s the way the world works. We face a variety of
challenges throughout the world on the security side and the
economic side, and we have to pursue our interests as a

Geithner said U.S. pressure for yuan revaluation was part
of a broad effort to lay a foundation for stronger growth that
is more balanced and less dependent on U.S. spending.

“We’re trying to work with other countries around the world
to make sure that the world can grow faster as those
adjustments in the U.S. happen,” he said in the interview.

“And that means that countries large and small, countries
around the world, have a huge interest in making sure that
growth in their countries comes more from domestic sources.
That’s what’s at stake, that’s what we’re trying to generate
support for around the world,” he added.

Turning to negotiations in Congress over a financial reform
bill, he said the United States was “very, very close to the
most sweeping reforms to those put in place after the Great

He reiterated support for a strong banking supervisory role
for the Federal Reserve, and said he was confident new
derivatives rules would be stronger than those proposed in a
House of Representatives version of the legislation.

He also said in the interview that the rise in U.S.
Treasury yields reflects returning investor confidence.

“What you’re seeing largely across the world now, is more
confidence the world’s coming back, more confidence that the
U.S. is emerging stronger, more comfort around the world among
investors to take more risks again,” he said.

Stock Market News
(Reporting by David Lawder; Editing by Tony Munroe)

UPDATE 1-US’ Geithner says yuan to have broader int’l role-TV