Treasury's Paulson "Actively Pressing China" On Currency Policy

U.S. Treasury Secretary Henry Paulson said on Wednesday that he was pushing China to
speed up its move toward greater currency flexibility, but said he wants to achieve more than that in the next two years.

"My goal is to make significant progress toward a fully market-determined, floating Chinese currency," Paulson said in remarks prepared for the Senate Banking Committee, where he
testified about Treasury's semi-annual currency report.

Paulson's testimony is being carried live on CNBC.com's home page.

The last report, issued just before Christmas, had again declined to name China a currency manipulator, angering many legislators who said China keeps its yuan currency undervalued to gain unfair advantage in trade with the United States.

"China does not yet have the currency policy that we want it to have and that it needs," Paulson conceded. "We are actively pressing the Chinese to introduce greater currency
flexibility and undertake wider market reforms."