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3/1/2016, 12:34 PM (Source: TeleTrader)
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U.S. Treasury Secretary expects stability of currency

U.S. Treasury Secretary Jacob Lew doesn’t expect further yuan depreciation, as he said on Tuesday, after the meeting with Premier Li Keqiang and other senior economic officials in Beijing and Shanghai. China and other economies that participated in meeting of 20 largest economies in the world, committed that they will not start currency war, therefore global market will remain stable.  

There is no threat of currency depreciation, hence the countries don’t have to worry about surprises on the market, said Lew. China has to undertake policy of market-made exchange rate, and the U.S. will be highly supportive. After a sudden depreciation of currency in August, China has been intervening on the market to keep yuan stable.

While the U.S. Treasury Secretary has positive forecast about future cooperation, others pointed out their doubts. Charles Collyns, managing director and chief economist at the Institute of International Finance, said that this will be long battle and that proclaimed policy of currency stability will not be sustainable.

The Treasury Department stressed that China should turn to other issues like unemployment, public investment and consumption activity.

 

Image: Beta/AP

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