Of the Council of Treasury Chief Timothy Geithner says America will engage in the devaluation of the US dollar
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Timothy Geithner, u.s., when Finance Minister asked how much greater China should allow the yuan to rise, replied: "Superior." Photo: Bloomberg
"It's very important that people understand that American United States and no country in the world can devalue its prosperity, to be competitive", he said. " It is not a viable strategy.?
The dollar strengthened against a basket of currencies after his comments to the leader company in Silicon Valley California Monday, including the yen, the euro and the pound sterling.
Is the first times since February that Mr. Geithner-who helped create the "dollar strong mantra" in the years 90 - has broken his silence on the weakened American dollar.
It's also weekend meeting of Heads of finance group 20 rich countries and emerging in southern Korea which should be overshadowed by a dispute between China and on the evaluation of the yuan United States and growing fears of protectionist currency wars.
The weakness of the dollar has already led Japan focused on exports to launch an unsuccessful response to strengthen the yen, while the Brazil warned that an "international currency war" was harming the competitiveness of the country - a weak dollar causes more funds to flow in the Brazil and of other emerging market economies growing currencies.
The dollar fell 7pc since late August when Fed Chairman Ben Bernanke has hinted the possibility of fresh stimulus to feed the largest economy in the world.
Respond to questions from the audience before the Palo Alto, California Commonwealth Club he said the United States should "work hard to maintain confidence in the dollar strong."
Friday, the dollar index has reached a minimum of 10 months against a basket of currencies, while the greenback was cool plumbing minimum 15 years against the Japanese yen.
Brazil Monday moved to cool a strong rally in its currency by increasing fees for foreigners buy local and exchanging bonds in foreign currency derivatives.
Finance Minister Guido Mantega said the move was intended to reduce foreign investment in the Brazil, and urges other States to take coordinated action against the weakness of the dollar.
Minister for the economy of the Argentina and public finance Amado Boudou Monday called on developed countries to focus on job creation rather than actions that weaken their money, saying that a "true currency war" was underway.
However, they say the problem is China, restrictive exchange rate regime that until recently had kept largely linked to the dollar.Il yuan only wants China to allow the value of the yuan to rise.
On Friday, Mr. Geithner delayed a report on the subject if value of the yuan is manipulated, saying that he wants to work in the g-20 process to chop a multilateral solution.
A higher how China's expected allow the yuan to rise, he replied: "superior".
On the question of whether the dollar lose its status as the world reserve currency the head of the Treasury Board stated: "not in our lifetime."
