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Post by bot on Sept 4, 2015 18:50:46 GMT -5
Treasury's Lew irked by the handling of China's foreign-exchange devaluation
WASHINGTON (MarketWatch) - Treasury Secretary Jacob Lew on Wednesday criticized the way China announced last month's shift in its foreign-exchange policy. In an excerpt of an interview aired on CNBC, Lew said that "there is an economic and political reality to things like exchange rates, and they need to understand that they signal their intentions by the actions they take and the way they announce them." Markets were caught flat-footed last month when China loosened its grip on the yuan's foreign exchange value which immediately weakened its currency versus the dollar. The potential ramifications of the move are still causing unease in global financial markets. Lew added that China needed to continue economic reforms designed to transform the economy from a dependence on exports towards more domestic spending and said the White House would continue to hold them accountable. Treasury's admonishing of Beijing comes as President Obama is set to host China's President Xi JinPing later this month. Lew and his Chinese counterpart will both attend the G-20 meetings in Turkey later this week.
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