MW: Geithner confident China to move to flexible yuan
WASHINGTON (MarketWatch) -- Treasury Secretary Timothy Geithner said Thursday he was "confident" China will allow greater flexibility for its currency. "China...has committed to move. They understand they need to do it. I think they want to do it. And I am actually quite confident that they will do it," Geithner said in testimony to the Joint Economic Committee. After a period of gradual appreciation, China has re-pegged its currency to the dollar during the financial crisis. Many economists say the fixed currency poses a risk to the global recovery. President Barack Obama raised the issue during his visit to China earlier this week, but there was no public signal from China's leaders that they were considering any change to their currency policy.
