Geithner: China currency move has been significant

WASHINGTON (MarketWatch) – Treasury Secretary Timothy Geithner said Friday that China’s yuan has already undergone “a very substantial, meaningful shift.” In remarks at the White House, Geithner said the right measure of the appreciation of the yuan includes inflation. China’s inflation rate is much higher than the slow rise in U.S. consumer prices. “The exchange rate’s now appreciating in real terms, which is what matters, at roughly a pace of about 10% a year,” Geithner said. Geithner said China was in the early stage of the process of letting its currency strengthen. The U.S. still thinks that it is in China’s interest to let the yuan appreciate more rapidly, he said.

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