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US Treasury Secretary Urges Currency Reform in China

FILE - Treasury Secretary Jacob Lew.
FILE - Treasury Secretary Jacob Lew.
U.S. Treasury Secretary Jack Lew is urging China to allow the market to play a bigger role in determining the value of its currency, the yuan.

Lew made the comments in Beijing on Tuesday ahead of meetings with Premier Li Keqiang and Vice Premier Wang Yang.

"It's important that China demonstrates a renewed commitment to move towards a more market-determined exchange rate, which would help provide a more balanced domestic growth and global trade, while moving towards a more transparent exchange rate policy," said Lew.

Beijing announced in March it would allow the value of the yuan to fluctuate more freely against the dollar.

Washington welcomed the move, but the U.S. Treasury recently said the value of China's currency remains "significantly" undervalued.

A weaker yuan makes Chinese goods cheaper for Americans and makes U.S. goods more expensive for Chinese, giving an advantage to Chinese exporters.

Lew also urged China to further open its markets to foreign investment, saying the U.S. wants a more "open, balanced" trade relationship.
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