Currency act shortsighted

Increasing pressure on renminbi to appreciate will not help US solve its economic problems in the long run

The US Senate approved the program of the Currency Exchange Rate Oversight Reform Act of 2011 project plan on Oct 3 by 79-19. If passed into law it would allow the US government to slap duties on products from countries believed to be undervaluing their currencies to subsidize their exports. And it would cast a long shadow on the United States' relationship with China, whose renminbi is undoubtedly a main target of the act and will certainly be the main victim.

Pressuring the renminbi to appreciate is a bad choice for the US, as it will hurt both countries as well as global economic growth in the long run.