WASHINGTON, April 3 (Reuters) - The Obama administration on Saturday delayed a decision on whether to label China a currency manipulator in a move likely to further thaw relations between the two powers but anger many U.S. lawmakers.
The U.S. Treasury Department was to issue the semi-annual report on currencies to Congress on April 15, just days after Chinese President Hu Jintao is slated to visit Washington for a nuclear security summit hosted by President Barack Obama.
Lawmakers have increasingly urged the Treasury to brand China a manipulator, saying that Beijing deliberately keeps the value of its yuan low against the dollar to give its exporters a trade advantage that costs U.S. jobs.
The delay will push the decision to well after Hu's visit, avoiding an embarrassing situation that could provoke a retaliatory response from Beijing. It also allows the Obama administration some breathing room to try to persuade Chinese officials to voluntarily allow the yuan to rise.
The yuan has been stuck at its current level of around 6.8 to the dollar since July 2008, when the financial crisis worsened, following a three-year period of gradual increases.
No comments:
Post a Comment