Global Biz

US: Currency issue won't be fixed at G20

(Agencies)
Updated: 2010-11-02 09:38

WASHINGTON - The United States said on Monday it does not foresee China bowing to pressure over its yuan currency during a Group of 20 summit in Seoul, playing down expectations for major progress on global economic imbalances.

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A US official said they do not expect the currency issue to be solved once and for all in Seoul. "This is part of an ongoing effort," Michael Froman, White House deputy national security adviser, told reporters.

President Barack Obama will attend the G20 in South Korea Nov 10-12 during a 10-day tour of Asia, when he will also visit India, Indonesia and Japan on a mission to deepen trade ties to boost US exports and jobs back home.

His departure on the longest foreign trip of his presidency so far will be just three days after US congressional elections, in which Obama's Democrats are expected to be punished by voters for stubbornly high US unemployment.

The G20 forms a central part of the president's economic efforts in Asia, which also includes a meeting of the Asia-Pacific Economic Cooperation forum in Japan, and a speech to a US-India business summit to promote corporate America.

US officials say they are also working hard to remove remaining obstacles to advancing a long-stalled free trade pact with South Korea in time for Obama's meeting with South Korean President Lee Myung-bak during his visit to Seoul.

G20 played a vital coordination role during the 2008 global financial crisis. But that spirit of collaboration has frayed since growth resumed, amid concern some countries might aid exports through competitive currency devaluations, and officials said Obama would emphasize cooperation.

"The risk is increasingly clear that uncoordinated and unilateral actions could undermine the strong, sustained and balanced growth that we all need in the G20," said Treasury Under Secretary for International Affairs Lael Brainard.