BizNomic

Although the US announced that it would for the time being shelve its decision on whether to name China as a currency manipulator (otherwise due on April 15), Treasury Secretary Timothy Geithner also added that China was in fact relying on “currency intervention” and must move to a “more market-oriented exchange rate.” In a written statement Saturday, Mr. Geithner cited a spate of high-level meetings between China and the U.S. over the next three months as a reason to delay. The meetings, he said, “are the best avenue for advancing U.S. interests at this time.”

China has long been accused of undervaluing its currency Yuan in order to give its exports a competitive advantage in the global market. U.S. manufacturers say China’s yuan is undervalued by as much as 40 percent and is a big reason for the massive trade deficit, which totaled $226.8 billion last year, the largest imbalance with any country.

A growing number of lawmakers say the practice has contributed to the U.S.’s large trade deficit with China and cost Americans jobs.

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