Paulson: Yuan should appreciate faster

24 October 2007

US Treasury Secretary Henry Paulson called for China to allow its currency, the yuan, to appreciate at a faster rate at a conference on China-US trade in Washington, the Wall Street Journal reported. The benefits of such a move, said Paulson, include helping to solve economic imbalances and helping monetary policy respond effectively to inflation. He added that such monetary policy reforms are essential for the long-term stability of the Chinese economy. Paulson stressed the importance of maintaining economic ties between the two countries, adding that US President George W. Bush has seen significant progress in his talks with Chinese government officials. US Trade Representative Susan Schwab, who also spoke at the conference, warned against trade protectionism in China and the US.