A U.S. Treasury official made a series of important declarations for without publicly disclosing his identity. These are regarding some of the world’s economic and politic hottest issues: China’s control on its own currency and the crisis in Ukraine provoked by Russia’s actions.
China is reviving yuan control and is not going along with its previous engagements of adopting a market-determined exchange rate.
There are claims that the People’s Bank of China has created conditions for a 2.5% loss on the yuan since the beginning of 2014, in order to curb speculation on the currency’s possible appreciation. China is permanently increasing its current account surplus, its foreign reserve and continues to be a preferred destination for net foreign –direct investments.
The U.S. is determined to further supporting Ukraine’s sovereignty. President Vladimir Putin’s government is warned that all necessary efforts will be made in order to identify and implement other economic penalties for Russia, in case the violation of Ukraine’s territorial integrity will be continued.
Obama administration is limited in its global actions to the Ukraine crisis by the U.S. Congress’s rejection on the legislative project that would have allowed the boosting of International Monetary Fund’s resources. Yet, the administration hopes it will manage to obtain the funding, later on this year, by closely working with lawmakers.
U.S. will seek for other countries’ support in its mission to discourage Russia’s actions, as spring World Bank and International Monetary Fund meetings are scheduled to take place during this week, in Washington, featuring finance ministers and central bankers from all over the world.
Ultimately, the U.S. is calling for a diplomatic solution for the crisis in Ukraine, emphasizing how deeply negative this conflict’s escalation would be for the global economy.