Geithner: U.S. to Delay Currency Report

The Treasury secretary says the administration will delay a report to Congress on China's currency policy in order to first hold talks with Chinese officials.
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NEW YORK (

TheStreet

) -- Treasury Secretary Timothy Geithner says he will delay a report to Congress on the currency policies of major U.S. trading partners so that the U.S. can hold discussions with Chinese officials in coming months.

The report was due on April 15, and critics of China's exchange-rate controls had been pressing the Obama administration to label China a currency manipulator. They say that Beijing purposely devalues its currency in order to give its exports an unfair advantage.

In a written statement that

The Wall Street Journal

published on its Web site Saturday, Geithner said, "There are a series of very important high-level meetings over the next three months that will be critical to bringing about policies that will help create a stronger, more sustainable, and more balanced global economy."

But the Treasury secretary did make some comments about China's policies in his statement.

"China's continued maintenance of a currency peg has required increasingly large volumes of currency intervention," he wrote. "Additionally, China's inflexible exchange rate has made it difficult for other emerging market economies to let their currencies appreciate. A move by China to a more market-oriented exchange rate will make an essential contribution to global rebalancing."

Geithner said the administration hoped to make progress on the issue in by talking to Chinese officials at G20 meetings later this month and in June, and in the Strategic and Economic Dialogue with China in May.

This article was written by a staff member of TheStreet.com.