Economists see possible turnaround in U.S.-China currency row

The U.S. decision to delay its report on exchange rate policies could bring a turnaround in the recent currency dispute with China, economists believe.

Treasury Secretary Tim Geithner announced Saturday to delay a report to Congress on international economic and exchange rate policies, which might indicate whether China is manipulating its currency exchange rate.

The report was originally scheduled for April 15.

U.S. President Barack Obama's top economic adviser Lawrence Summers said Sunday that Geithner's decision was a right one as the United States will hold a series of high-profile meetings with China in the next three months.

Those meetings include a Group of 20 (G20) meeting of finance ministers and central bank governors in Washington later this month, a Strategic and Economic Dialogue (S&ED) with China in May, and a G20 summit in June.

Summers said strengthened negotiations with China and other countries is the best way to safeguard U.S. interests.

Wang Yong, a researcher at Beijing University, told Xinhua that the Untied States has realized that pressuring China on its currency policy would not solve the problems.

Once the U.S.-China currency issue escalates, it will affect not only trade and investment of the two countries, but also the regional and global economy as well, Wang said.

Source:Xinhua
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