China's Wen urges U.S. to keep deficit at 'appropriate size'
MarketWatch - Laura Mandaro
SAN FRANCISCO (MarketWatch) -- Chinese Premier Wen Jiabao on Sunday exhorted the U.S. to keep its deficit in control to stabilize the U.S. dollar exchange-rate, according to media reports.
"I hope that as the largest economy in the world and an issuing country of a major reserve currency the United States will effectively discharge its responsibilities," Wen said at a news conference in Egypt, according to wire reports.
China is the largest foreign holder of U.S. Treasurys.
Earlier this year, Chinese officials expressed concern about the continued value of those holdings as the U.S. pumps trillions of dollars into the financial system to pull the economy out of a severe recession. The U.S. Treasury has been issuing record amounts of debt to close the country's budget gap.
"Most importantly, we hope the U.S. will keep its deficit at an appropriate size so that there will be basic stability in the exchange rate and that is conducive to the stability and recovery of the world economy," he said.
Since early March, the U.S. dollar index /quotes/comstock/11j!i:dxy0 (DXY 75.02, -0.64, -0.85%) , which tracks the dollar's value against a basket of major rivals, has fallen about 15%, in part due to the Federal Reserve's loose monetary policy.
Laura Mandaro is a MarketWatch editor, based in San Francisco.
SAN FRANCISCO (MarketWatch) -- Chinese Premier Wen Jiabao on Sunday exhorted the U.S. to keep its deficit in control to stabilize the U.S. dollar exchange-rate, according to media reports.
"I hope that as the largest economy in the world and an issuing country of a major reserve currency the United States will effectively discharge its responsibilities," Wen said at a news conference in Egypt, according to wire reports.
China is the largest foreign holder of U.S. Treasurys.
Earlier this year, Chinese officials expressed concern about the continued value of those holdings as the U.S. pumps trillions of dollars into the financial system to pull the economy out of a severe recession. The U.S. Treasury has been issuing record amounts of debt to close the country's budget gap.
"Most importantly, we hope the U.S. will keep its deficit at an appropriate size so that there will be basic stability in the exchange rate and that is conducive to the stability and recovery of the world economy," he said.
Since early March, the U.S. dollar index /quotes/comstock/11j!i:dxy0 (DXY 75.02, -0.64, -0.85%) , which tracks the dollar's value against a basket of major rivals, has fallen about 15%, in part due to the Federal Reserve's loose monetary policy.
Laura Mandaro is a MarketWatch editor, based in San Francisco.
Posted by PIMPIN TURTLE at 11/9/2009 6:51 AM 
Categories: Latest News,Asia,Economics
Tags: U.S. Treasurys Yuan exchange-rate US Yen Deficit China Dollar Death
Categories: Latest News,Asia,Economics
Tags: U.S. Treasurys Yuan exchange-rate US Yen Deficit China Dollar Death
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