Geithner: U.S. Won't Devalue the Dollar to Boost Exports
The U.S. will not weaken the dollar in order to boost its exports, Treasury Secretary Timothy Geithner promised. "It is not going to happen in this country," Geithner told Silicon Valley business leaders of devaluing the dollar, according to Reuters.
Geithner spoke on Oct. 18 ahead of this weekend's meeting of finance ministers from the G-20 countries. Currencies may be a major topic of discussion, as tension between China and the U.S. rises over the value of the Chinese yuan.
"It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to [be] competitive," Geithner said. "It is not a viable, feasible strategy, and we will not engage in it." A weak currency can boost a country's economy by making exports cheaper.
The dollar has weakened against a basket of major currencies and the Japanese yen as the U.S. economic recovery falters. Some countries have attacked the Fed's accommodative monetary policy, while some in the U.S. have denounced the value of the yuan, which they say is artificially low.