India has no role in US-China currency dispute: Finance Secy
India on Tuesday distanced from the ongoing Sino-US row over revaluation of Chinese currency yuan saying it is their bilateral issue.delhi Updated: Apr 06, 2010 19:14 IST
India on Tuesday distanced from the ongoing Sino-US row over revaluation of Chinese currency yuan saying it is their bilateral issue.
America is seeking market-linked pricing of the yuan to allow for its appreciation as it feels that the undervalued currency is giving China a major trade advantage.
"We have no role to play on that (yuan issue). That is a bilateral issue between the US and China," Finance Secretary Ashok Chawla told reporters after a high-level bilateral meeting between Finance Minister Pranab Mukherjee and visiting US Treasury Secretary Timothy Geithner.
The comment come amid reports of the US seeking India's support on the issue. Incidentally, Foreign Minister SM Krishna is in Beijing now.
When asked whether the two leaders discussed the yuan issue, Geithner said at a press conference, "as we (the US) move to an economy that is saving more and investing more, we want to see broader reforms and changes outside the United States; this is in the interest of the world."
American lawmakers are putting pressure on the Obama administration to name China as "currency manipulator" on the basis of the US annual currency report. The US treasury, however, has delayed the publication of the report, which was scheduled for April 15, with Geithner reportedly stating that he would encourage China to follow market-related exchange rate.
China has been maintaining its currency at around 6.83 to a dollar since July 2008, ending the earlier decision of allowing the yuan to appreciate.
As the world emerges from low growth to more balanced and sustainable growth, Geithner said, "(it) will require changes in the US and it will require changes around the world... We are all working closely together...To lay conditions for a more healthy pattern of growth."
The US treasury secretary, on the other hand, praised India for sustaining growth through a strong domestic demand and said other countries should follow this example.
The Americans have also been critical of China being aggressive on exports and not focusing on internal consum