U.S. to Delay Chinese Currency Report

The article mainly talks about the fact that US would delay the decision on whether to declare China a currency manipulator. But the Obama administration also vowed to raise the issue at a series of forums, including the annual Strategic and Economic Dialogue between US and China and a meeting of G20 leaders. According to this article, American experts believe that China has artificially undervalued Renminbi. China had allowed Renminbi to appreciate during 2005-2008, but then resumed the practices to pegging its currency to a nearly fixed rate to bolster its export-oriented economy during the financial crisis. The economists claim that China can stimulate domestic demand and reduce reliance on export by letting Renminbi appreciate. Appreciation of Renminbi can also stimulate American private saving by making imports more expensive and exports less expensive.