Skip to comments.US Treasury delays new China forex report to Congress
Posted on 10/13/2012 12:11:13 AM PDT by bruinbirdman
The US Treasury said Friday it would delay the release of its semi-annual report on the currency policies of major trade partners, amid perennial pressure to brand China a serial currency manipulator.
The Treasury said it would put off publishing the report to Congress so it could "assess progress following the G-20 finance ministers and central bank governors meeting next month."
The Treasury regularly reviews the exchange rate policies of nine economies that account for 70 percent of US foreign trade, with most of the focus on China.
Critics in Congress accuse Beijing of keeping the yuan, or renminbi, artificially low to make Chinese exports unfairly cheap. They want the Asian nation officially labelled a manipulator in order to apply sanctions against the country.
The Obama administration has raised trade pressure on China but has refrained from any formal action on the currency front.
In its last report in May, the Treasury concluded that China had not met the standards for manipulation, even if the yuan, or renminbi (RMB), was persistently undervalued.
"The available evidence suggests the RMB remains significantly undervalued, and we believe further appreciation of the RMB against the dollar and other major currencies is warranted," the Treasury said at the time.
Mitt Romney, the Republican challenger to President Barack Obama in next month's election, has vowed to increase the pressure on Beijing if he wins the White House.
In a speech last month, Romney said that China's undervalued currency "drives American manufacturers and American producers out of business and kills jobs."
"I also want to make sure that if a nation cheats like China has cheated, we call them on the carpet and don't let it continue," he said.
....in other words, until after the election
The enemies within are purposley killing America and bringing it down to third worldism. We stand in the way of thier progress toward world government and dependency
The delay is probably justified by some Treasury policy wonk as “desirable so as not to antagonize the Chinese government prior to next month’s ministerial meeting where progress might be made in getting them to revalue the yuan to a higher level.”
This accomplishes several ends: 1) Barry doesn’t have to deal with it as an issue during the campaign, 2) makes the Chinese happy to have their abusive currency policies ignored, and 3) preserves the State Department/Treasury fantasy that the Chinese will willingly give away the major component of the manufacturing advantage they have over the rest of the world.