Reply #33: US's Snow-China should allow more yuan revaluation

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-01-05T145219Z_01_N05218640_RTRIDST_0_ECONOMY-SNOW-UPDATE-1.XML

WASHINGTON, Jan 5 (Reuters) - U.S. Treasury Secretary John Snow urged China on Thursday to allow further revaluation of its currency, the yuan, saying it would help world economies adjust from trade and current account imbalances.

"The trade deficit is influenced by lots of things, differential growth rates, differential savings rates and investment rates and so on. But clearly, getting the yuan more appropriately valued will be helpful to the global adjustment process," he said on CSPAN television.

But Snow defended the administration's decision not to formally cite China as a currency manipulator, saying U.S. pressure on Beijing has been effective and that Chinese policy-makers recognize further revaluation is in their national interest.

"They are putting in place mechanisms to allow their currency to have greater flexibility... so I think we're on the right course," Snow said.

Discussing a range of economic topics during a viewer call-in program, Snow said concerns about energy and slow global growth would top the agenda at a meeting of the Group of Eight major industrial economies in February.

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