Added by David Sandercock on October 19, 2010
Timothy Geither, the US Treasury secretary, stated during a meeting with business leaders of the Silicon Valley that the United States won’t devalue the dollar in order to gain an export advantage. He further added that this is a non-viable strategy for any country.
Mr. Geither has talked during this weekend about the tensions between US and China with regard to currency valuation.
The secretary stated that it’s of utter importance for citizens to understand that no country, including the USA, would devalue its way to economic prosperity, adding that this is neither a feasible nor viable strategy in which the US will never engage.
Back on Friday, the dollar hit its lowest value of the last ten months as compared to numerous major currencies worldwide.
The US has urged China to improve its economic situation and the yen’s value which is said to be under evaluated as to give Chinese businesses an advantage and helping their exports as well.
Currently, numerous emerging market countries have complained about the fact that money created by the Fed has, and will continue, to weaken the dollar, which also pushes their currencies up by allowing more funds to flow inside their markets.