Mexico tells China it must revalue currency
May 5, 2010
8:31amby Geoff Dyer
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More pressure on China over its currency from the ranks of the developing world - this time from Mexico.
Mexican economy minister Gerardo Ruiz told Reuters on Tuesday that his government would use the G20 summit in late June to lobby China to begin appreciating its currency.
“Policies that protect a currency are a kind of subsidy. China has to revalue,” he said. “If pressure were being applied, I think Mexico would be in a position to exercise pressure too.”
His comments come after both Brazil and India made their most public criticisms of China’s de facto currency peg two weeks ago. Such pressure from other developing countries is important because it makes it harder for China to argue the debate about its currency policy is just a US attempt to find scapegoats for the Great Recession.
As Sebastian Mallaby at the Council on Foreign Relations puts it, “If the rich and emerging economies are united in asking China to revalue, it would be harder to dismiss the request as an example of superpower arrogance.”
China does not like the idea of becoming a punch bag at the G20 summit on June 26-27 in Toronto - which is one reason why many analysts are expecting China to resume appreciating its currency over the next few weeks. However, the diplomatic calendar is getting crowded. At the end of May, Tim Geithner and Hillary Clinton will be in Beijing for the Strategic and Economic Dialogue between the US and China. If the Chinese government were to make a move close to this summit, there would be plenty of nationalist voices at home accusing Beijing of caving into foreign pressure.
ROFL!!! LK it's in the news what we talked about yesterday!!!!!!!!!! Yup that "diplomatic calendar" sure is full!!!!
May 5, 2010
8:31amby Geoff Dyer
| Share
More pressure on China over its currency from the ranks of the developing world - this time from Mexico.
Mexican economy minister Gerardo Ruiz told Reuters on Tuesday that his government would use the G20 summit in late June to lobby China to begin appreciating its currency.
“Policies that protect a currency are a kind of subsidy. China has to revalue,” he said. “If pressure were being applied, I think Mexico would be in a position to exercise pressure too.”
His comments come after both Brazil and India made their most public criticisms of China’s de facto currency peg two weeks ago. Such pressure from other developing countries is important because it makes it harder for China to argue the debate about its currency policy is just a US attempt to find scapegoats for the Great Recession.
As Sebastian Mallaby at the Council on Foreign Relations puts it, “If the rich and emerging economies are united in asking China to revalue, it would be harder to dismiss the request as an example of superpower arrogance.”
China does not like the idea of becoming a punch bag at the G20 summit on June 26-27 in Toronto - which is one reason why many analysts are expecting China to resume appreciating its currency over the next few weeks. However, the diplomatic calendar is getting crowded. At the end of May, Tim Geithner and Hillary Clinton will be in Beijing for the Strategic and Economic Dialogue between the US and China. If the Chinese government were to make a move close to this summit, there would be plenty of nationalist voices at home accusing Beijing of caving into foreign pressure.
ROFL!!! LK it's in the news what we talked about yesterday!!!!!!!!!! Yup that "diplomatic calendar" sure is full!!!!