The Washington Post
By Howard Schneider
Treasury Secretary Timothy F. Geithner has asked the world’s largest economies to commit to specific trade and currency targets in an effort to secure a global economic recovery.
In a letter Wednesday to the finance ministers of the G-20 nations obtained by The Washington Post, Geithner outlined a three-point plan that warned countries against artificially undervaluing their currency to prop up exports. The proposal, rooted in the United States’ ongoing trade dispute with China, did not mention China by name. But the letter said that countries should refrain from adopting “exchange rate policies designed to achieve competitive advantage by either weakening their currency or preventing appreciation of undervalued currency.”
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