Wednesday, March 24, 2010

China Official: "Will not adjust exchange rate"

by Bill McBride on 3/24/2010 11:58:00 PM

From Sewell Chan at the NY Times: China Says It Will Not Adjust Policy on the Exchange Rate

After meeting with officials at the Treasury and Commerce Departments on Wednesday, China’s deputy commerce minister, Zhong Shan, told reporters, “The Chinese government will not succumb to foreign pressures to adjust our exchange rate."
...
“It is wrong for the United States to jump to the conclusion that China is manipulating currency from the sheer fact that China is enjoying a trade surplus,” Mr. Zhong told reporters in a meeting at the Chinese Embassy. “Besides, it’s wrong for the United States to press for the appreciation of the renminbi and threaten to impose punitive tariffs on Chinese experts. This is unacceptable to China.”
This is more posturing before the Treasury releases the worldwide currencies report on April 15th that might name China a "currency manipulator".