Geithner: U.S. study opportunities to influence China to accelerate the strengthening of the yuan

U.S. authorities are dissatisfied with the pace of the yuan, and considering various options for the impact on China to speed up the process, said U.S. Treasury Secretary Timothy Geithner, as quoted by agency Bloomberg.

Union officials and the U.S. has repeatedly advocated the strengthening of the renminbi, because the relative weakness of China's currency led to a negative for western trade surplus with China, and also reduces the competitiveness of American and European products in the Chinese domestic market.

"The pace of strengthening the yuan too low, and the extent of its capacity is too limited - said Geithner. - We consider the important question as to what different combinations of measures available to the U.S. and internationally, may encourage the Chinese authorities to accelerate the process. "

"Power of intervention" still contribute to the preservation of an undervalued renminbi, even after the adoption in June, China's government decision to abandon the currency peg to the dollar, said the U.S. Treasury.

The Central Bank of China on June 19 this year, announced the rejection of pegging the Yuan to the dollar and increasing the flexibility of formation of the RMB exchange rate, that is, the return mechanism that existed before the global economic crisis. Nevertheless, since the adoption of this decision the yuan has appreciated against the dollar by only 1%.

Given the approach of November's congressional elections, U.S. lawmakers have scheduled hearings on the issue of monetary policy in China and can pass a law providing for a mechanism that compensates for U.S. companies to the negative impact of cheap yuan, which makes Chinese goods more attractive in foreign markets.

Such statements Geithner became the most serious on this issue since its entry into the position of finance minister in January 2009. Previously, he has been repeatedly criticized by some U.S. lawmakers for not doing enough tough stance against Beijing on the exchange rate.According to the U.S. Treasury, the strengthening of the yuan would help rebalance its economy, but does not change the situation with a deficit of U.S. trade with China.