yuan imbalance

Currency Wars: How Ben Bernanke Outsmarted China

After years of exhorting China to increase the value of its yuan, the currency is finally rising: It has appreciated some 3.5% since June while China battles inflation and works to cool its red-hot economy. Here's how the Fed managed to succeed where political wrangling fell short.

G-20 Leaders Water Down U.S. Stance on Currencies

Leaders of 20 major economies on Friday refused to back a U.S. push to make China boost its currency's value. That will keep alive a dispute that raises fears of a global trade war amid criticism that cheap Chinese exports are costing American jobs.

G-20 Leaders Fail to Back U.S. Plan on Chinese Currency

The leaders of the 20 major economies failed to back a U.S. plan intended to push China to let its currency strengthen. The leaders released a statement in which all countries pledged to avoid "competitive devaluation" of currencies, The Associated Press said.

China, Germany Criticize U.S. Quantitative Easing

China and Germany, the world%u2019s second-largest and fourth-largest economies respectively, expressed concern about Federal Reserve plans to pump $600 billion into the U.S. economy. The Fed announced plans to buy $600 billion of assets earlier this week. The Fed hopes that the move, known as quantitative easing, will help boost the U.S. economy and lower unemployment.

As the Dollar Weakens, Commodities Shine

Market watchers lately have loudly proclaimed the end of the dollar, which has left investors looking to stay ahead with a choice of betting on stocks, which have 17% fallen in the last decade, or staying "safe" in very low-yield money market funds. But there is an alternative: Commodities.

August Trade Gap Grows Due to Oil, Chinese Imports

The U.S. trade deficit unexpectedly jumped to $46.3 billion in August, as the nation%u2019s deficit with China surged to a record $28 billion -- pushing overall imports up 2.1%, while overall exports rose just 0.2%. Oil prices were the other key culprit as our petroleum deficit surged 5.7%.

Geithner Says U.S. Favors Significant Yuan Appreciation

Treasury Secretary Timothy Geithner said the U.S. favors a "gradual, but still significant" appreciation of the yuan. Geithner said the U.S. would prefer China let market forces drive up the value of the currency, The Wall Street Journal said. Geithner noted that the yuan had strengthened by about 2.5% in six weeks.

China Warns Against Duties on Imports to U.S.

China denounced a bill passed by the U.S. House of Representatives that aims to push up the value of the Chinese currency. The bill, which would let U.S. companies petition for duties on Chinese imports to compensate for the impact of the weak yuan, would hurt the global economy if it became law, the Chinese government said today.

Geithner: China Should Let Yuan Appreciate Faster

Treasury Secretary Timothy Geithner said that China should let its yuan currency appreciate faster to demonstrate that the country is willing to follow through on promises to its trading partners. "Frankly they haven%u2019t let the currency move very much so far," Geithner told Bloomberg News. "They know they%u2019re just at the beginning of that process and I think we%u2019d like to see them move more quickly."

The Outcry Over China's Export Boom

China's global trade surplus ballooned to $28.7 billion in July, a sign that promises to adjust its currency haven't yet begun to bite. That could spell increasing friction with Washington, where lawmakers facing reelection in November are raising demands for retaliation.

U.S. Says Yuan Undervalued; China Not Manipulating Currency

A report from the U.S. Treasury Department avoided naming China as a currency manipulator, saying instead that the yuan is "undervalued." The report said that the recent Chinese decision to end the peg to the dollar was a "significant step," and pledged to monitor the Chinese currency in the next three months, Bloomberg News reported.