The Obama administration announced today that it would delay a decision on whether to declare China a currency manipulator. However, it vowed to press Chinese governors on the politically charged issue of the nation’s currency valuation during a series of meetings in June.
This action of the US Treasury seemed intended to send a reassuring message both to Congress as well as to China. It signaled that the Obama administration prefers to resolve the dispute diplomatically, rather than force a showdown. But it also pressed the case for a change in China’s policy, taking the position advocated by many US lawmakers in both parties.