UPDATE 1-Obama prods China's Wen on currency - U.S. official

Published 09/23/2010, 02:47 PM
Updated 09/23/2010, 02:48 PM

* Obama presses yuan as "most important issue"

* President asks China's Wen to do more on currency

* Wen quoted as saying exchange rate reform to continue (Adds quotes from U.S. official)

NEW YORK, Sept 23 (Reuters) - U.S. President Barack Obama said in a meeting on Thursday with Chinese Premier Wen Jiabao that China needed to do more to resolve a dispute over the value of the Chinese currency, a senior U.S. official said.

Obama told Wen in their talks on the sidelines of the U.N. General Assembly that the currency was the "most important issue" of their meeting, the official said.

"The president talked about the importance of our trading relation in general and the currency issue specifically to the United States and the world economy," Jeffrey Bader, the senior National Security Council official for Asia, told reporters.

Calling the yuan, or renminbi, "the most important issue we're going to talk about today," Obama called on Wen's China to "do more than it has done to date," Bader added.

Wen told Obama that China would press ahead with reforming exchange rate rules for the yuan, Bader said.

"Premier Wen did reiterate the Chinese intention to ... continue with reform of their exchange rate mechanism."

China's central bank said in June it would loosen a peg against the dollar and let the yuan fluctuate more freely. Since then it has risen 1.8 percent against the dollar.

The slow appreciation of the yuan makes it an easy target for U.S. politicians eager to address high unemployment in an election year.

The talks between Obama and Wen came as U.S. lawmakers appeared to move closer than ever to acting on long-standing threats to pass legislation that would penalize China for keeping its currency artificially low.

Critics inside and outside Congress say China deliberately undervalues its currency by as much as 25 percent to 40 percent to give Chinese companies an unfair trade advantage, hurting U.S. exports and employment.

In a speech on Wednesday night, Wen rejected any link between the level of the Chinese yuan and a U.S. trade deficit with China that annually exceeds $200 billion. (Reporting by Steve Holland; Editing by Doina Chiacu and Jerry Norton)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.