U. S. Treasury Report on China's Currency

U.S. TREASURY REPORT ON CHINA'S CURRENCY

Sen. Chuck Grassley, chairman of the Committee on Finance, today made the following comment on the U.S. Treasury Department's report that declined to brand China a manipulator of its currency.

"Everyone knows China isn't allowing market forces to influence the value of its currency. China just isn't living up to its obligations as a mature economy that's benefitting greatly from open international trade. The country has made some reforms, but it isn't even letting those reforms work freely. Today's report from Treasury shows our current law isn't working. And even if the report had cited China as a currency manipulator, there would've been no real consequences. The next step would've been to talk more, and we're already talking. So we need to get rid of the entire process of deciding whether to name a country a currency manipulator and replace it with something better. I've introduced legislation with Senator Baucus that does just that. Our bill would completely overhaul our currency oversight laws, which date to 1988. We need more structured engagement when major currencies are imbalanced, both bilaterally and multilaterally. And, there need to be consequences if other governments don't fix their imbalances. Our bill accomplishes these necessary goals. I look forward to working with my colleagues to see this important legislation enacted into law this year."

http://grassley.senate.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=5058&Month=5&Year=2006