US Treasury Secretary Timothy Geithner, making the first official address of his trip to China, urged Beijing to move toward a more flexible exchange rate for the renminbi, the Wall Street Journal reported. Speaking at Peking University, Geithner referred to the need to overhaul the economies of both the US and China to ensure a sustained global recovery. "Greater exchange-rate flexibility will … encourage resource shifts to support domestic demand, and provide greater ability for monetary policy to achieve sustained growth with low inflation in the future," Geithner said. Noting that the purchases of US consumers could not be relied on as a driver of growth in the future, he highlighted the need for China to strengthen domestic demand. While calling for more flexibility, Geithner’s comments on the renminbi were more restrained than earlier statements, in which he said China was manipulating its currency. Separately, the US Treasury Department appointed David Dollar, currently the World Bank’s country director for China, as economic emissary to China.
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