Geithner likely to talk currency in China

Marketplace Staff Apr 8, 2010
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Geithner likely to talk currency in China

Marketplace Staff Apr 8, 2010
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TEXT OF STORY

Treasury Secretary Timothy Geithner is in Beijing today for talks with one of China’s top economic aides. Now climate change might come up, also Iran and North Korea. But most observers say the meeting’s real focus is currency. From Shanghai, Bill Marcus has the story.


Bill Marcus: Timothy Geithner’s agenda in China hasn’t been released. In fact, its unknown if its even been finalized, considering China’s surprise invitation to the U.S. Treasury Secretary was only just announced yesterday.

But the high-level talks between finance officials suggests that China’s monetary policy is on the docket. Experts say don’t expect anything radical as a result of the meeting. A key Bank of China adviser today expressly recommended against any sharp rise.

Tom Miller is an economist with Dragonomics:

Tom Miller: I don’t think this presages that this will be a sudden move in the reminbi. I think it’s a sign that the U.S. and China are talking to one another. and that’s very positive. But I don’t think its anything to be desperately excited about.

Many think that the talking is directly related to the decision made over the weekend by the Obama administration to delay a high-stakes report that could have labeled Beijing a currency manipulator. Others say that China wants the yuan to appreciate, as long as it looks like they’re not pressured into it.

In Shanghai, I’m Bill Marcus for Marketplace.

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