China attempts to resist US pressue on currency revaluation

China attempts to resist US pressue on currency revaluation

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China continues to insist that it will not respond to outside pressures to revalue its currency after calls for it to do so at last weekend’s G7 meeting.

That pressure just continued on Thursday, however, as U.S. Federal Reserve chairman Alan Greenspan said that China will have to proceed with revaluation “sooner rather than later” in the service of global economic stability.

U.S. treasury secretary John Snow supported Greenspan’s comments. Snow said that it is time now for China to revalue the renminibi after having made much progress toward that goal. He had pursued the issue at the G7 meeting.

Some analysts believe that the chances are great that China will revalue their currency soon and that absence from last weekend’s G7 conference was their attempt to be seen as making the change on their own rather than as a result of pressure from the U.S. and other countries.