China refuses to revalue currency
US Treasury Secretary Timothy Geithner says that global economic reforms are being impeded by China’s refusal to revalue their currency. It seems that China’s yuan may be undervalued by up to 40%.
The US has long had issue with the yuan being undervalued, claiming China uses it as a trade advantage. China has maintained the value of the yuan against the dollar since 2008 as demand slipped during the recession.
China says it will begin a gradual revaluing, but has not set a timetable.