Geithner delays exchange rate report
Treasury Secretary Timothy Geithner announced he would be delaying his report on exchange rate policies due April 15. The biannual report, first mandated in the 90s, reviews the currency practices of major U.S. trading partners. In an official statement, Geithner said the move was made in the interest of waiting for a string of important high-level meetings, including the G-20 Finance Ministers and Central Bank Governors meeting in Washington later this month. CNBC commentator Tony Fratto calls the move “buying time” in this blog:
By delaying the report until June, however, the Obama Administration is hoping to fend off a bipartisan call for action in Congress led by Senators Lindsey Graham (R-SC) and Chuck Schumer (D-NY). Schumer and Graham have always felt that their saber-rattling strengthens Treasury’s hand. I’ve long felt it has the opposite effect — highlighting the issue in such a public way puts the Chinese in a position of appearing to give in to pressure, and that’s something they’re loathe to do.
Chinese president Hu Jintao will soon visit the U.S, and Geithner will lead a meeting of the U.S.-China Strategic and Economic Dialogue this spring.
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