Yuan peek-a-boo

16 September 2010 By Wei Gu

Beijing put the yuan on an appreciation burst ahead of U.S. Treasury Secretary’s testimony on Thursday. But U.S. lawmakers are losing patience with those welltimed baby steps. The yuan needs a oneoff revaluation of say 25 pct to avoid trade penalties.

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U.S. Treasury Secretary Timothy Geithner will tell senators and congressmen on Sept. 16 that China's yuan currency has risen too slowly and he is examining what tools may be needed to persuade Beijing to move faster, according to prepared testimony to the Senate Banking Committee.

U.S. senators and congressmen have prepared bills designed to put pressure on Beijing. Both bills would authorise the U.S. Commerce Department to slap duties, on a casebycase basis, on goods from countries with "fundamentally misaligned" currencies.

The People's Bank of China fixed the yuan's daily midpoint ersus the dollar at 6.7181 on Sept. 16, which is a new high for the fifth day.

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