US, China Meet To Discuss Exchange Rate Reform
The US and China have commenced a 2-day dialogue to discuss, among other currency facets, exchange rate liberalisation and its proposed benefits to China-US economic relations.
While the US pushed to reach an agreement with diplomats, China approached the discussion with an inclination toward balance, rather than swift resolution.
China’s Communist party recently underwent a series of economic reforms, namely a market-based approach to the exchange rate’s formation mechanism, that officials believe will lead to a more sustainable economy.
The Strategic & Economic Dialogue brings together top members of Chinese and US economic and security officials annually. This year the meeting is headed by Secretary of State John Kerry and Treasury Secretary Jacob Lew, who are representing the US. Chinese Vice Premier Wang Yang acts as representative from his country along with State Councillor Yang Jeichi.
The economic exchange between the two world powers has long been a hot topic of discussion. The future of trade agreements and currency exchange will have a significant effect on these relations.
The Chinese Yuan has made a steady recovery after bottoming out earlier this year, but this month has suffered another downturn. The currency stands presently at ¥6.19 to $1.
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