July 26, 2007
HP-511

Treasury Statement on Currency
Exchange Rate Oversight Reform Act

Washington, DC--The Treasury Department issued the following statement today after Senate Finance Committee consideration of the Currency Exchange Rate Oversight Reform Act of 2007:

"Treasury recognizes that Members of Congress wish to send a strong message through this bill and others. Secretary Paulson will be delivering a strong message to President Hu and others next week in China. It is vital to the health of the global economy, including the U.S. economy, that China reform its currency and take other steps to reduce imbalances.

"We particularly respect the efforts and intent of the Senate Finance Committee; however, do not believe the approaches taken in the bill reported today would strengthen the hand of the United States in achieving essential economic reforms. It distances the U.S. from a multilateral approach, and raises serious concerns regarding US compliance with international rules governing antidumping investigations.

"Treasury cannot support or recommend this approach, and continues to believe that direct, robust discussions with the senior Chinese leaders, not legislation, is the best means of achieving progress."