US Federal Reserve Chairman Alan Greenspan told the Senate Budget Committee that China will unpeg its currency from the dollar "sooner rather than later" because the policy "is beginning to significantly work to the detriment of the Chinese economy," according to media reports. Citing difficulties Beijing is facing to sell enough yuan-denominated debt to soak up large amounts of foreign securities it must buy to maintain the yuan's value at 8.28 to the dollar, Greenspan said the "imbalances" will force Beijing to abandon the currency peg. Meanwhile, President Bush's US trade representative nominee, Rep. Robert Portman, said during his confirmation hearing that he plans to take a strong position against China, promising "an immediate top-to-bottom review" of the trade complaints against China.
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