Lew Says U.S. to Ensure Dollar Remains Top Reserve Currency
Treasury Secretary Jacob J. Lew said the U.S. intends to ensure the dollar stays the worlds leading reserve currency a day after the International Monetary Fund elevated the Chinese yuan into a basket alongside the dollar, euro, yen and pound.
The dollar remains the reserve currency of the world for a good reason, Lew said in a Bloomberg Television interview Tuesday in Washington when asked if the U.S. would consider converting any of its foreign-exchange reserves to yuan. Were determined to run a U.S. economy that continues to be a strong, safe and secure economy that makes that the case in the future.
While the U.S. supported the IMF decision, weve also had long, ongoing discussions with China about their currency practices, he said. Theyve made commitments to us that they will not intervene in ways that are unfair. And those are important commitments, and they know were going to hold them to those commitments.
The remarks suggest that the Obama administration isnt yet convinced that China has completely allowed markets to determine the yuans value, despite Mondays approval by the IMF, which puts the currency in the Special Drawing Rights basket. The funds decision reflected a long study by the IMF technical team and the yuan met the requirements for inclusion, Lew said.
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http://www.bloomberg.com/news/articles/2015-12-01/lew-says-u-s-to-ensure-dollar-remains-leading-reserve-currency