Tim Geithner denies us plans to weaken the dollar
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Tim Geithner refused to quantitative easing deliberately weaken the dollar: Secretary to the Treasury Board Secretariat Tim Geithner, the United States. Photo: GETTY
For requests for Wolfgang Sch?uble, the German Finance Minister, "that the United States accused of making the United States, China is in different ways," Mr. Geithner has rejected the idea that the decisions of the Federal Reserve earlier this week somehow contained ulterior motive.
He said that the United States "never use our dollar as a tool for economic benefit"-Noting that capital is flowing to emerging markets to fuel growth in these areas.
"You can have too much of a good thing, but it is basically a positive thing,"said Mr. Geithner to Kyoto Japan, at a meeting of Finance Ministers Group Asia-Pacific economic cooperation.""
"Which is the engine that you are seeing in emerging markets capital flows is basically a positive reflection of the confidence in the likely path of growth rates in these countries over time."
Commenting on the greenback was last salute in an increasingly bitter currency war playing between Washington and Beijing in each country of the respective interventions.
Earlier this week, the Chinese Ministry of commerce said "continuous and drastically the US dollar depreciation" could intensify cours.Il war follows an intense period in which the administration of President Barack Obama attempted in Beijing pressure allowing the yuan to float freely.
In June, Beijing has agreed to allow the yuan slightly more flexibility in its dollar peg, but the move was widely dismissed by Washington.
Adding to the discussion, Korea South, President Lee Myung-bak said he was in relying on the "peer pressure" rather than hard and fast rules to win the day in the debate of the currency during the G20 Summit week next to Seoul.
Mr. Myung-bak, who will chair the meeting of the 20 largest economies of the planet, says the Wall Street Journal even if he thought the US Fed quantitative easing would affect the exchange rate, a "robust U.S. economy" is important for the rest of the world.
To imbalances in current account - a growing problem given the deficits are suckled by the great powers developed, including the United States and United Kingdom - Mr. Geithner said there is now a broad consensus to develop a form any of framework in order to avoid excessive imbalances.
However, he said that detailed limits should not expect the Seoul Summit.
"It is not something that you can easily reduce to a single number" added Mr. Geithner. "It is not desirable, necessary and it is unlikely at this stage.
