China’s State Council says it will keep the yuan exchange rate stable to support its export sector. The comments come just days ahead of U.S. Treasury Secretary Geithner’s visit to China. He is scheduled to visit May 31. through June 2.
According to the summary of a cabinet meeting read out on tv, keeping the yuan stable is part of a package of policies aimed at stabilising external demand.
Meanwhile the official Xinhua news agency reported Geithner as saying he would not be raising questions about the yuan exchange rate or China’s trade surplus during his visit.
Clever man, why waste his breathe. There’s no way China is going to address these issues at a time when it is struggling to get it’s economy back on track.