Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

China Shouldn’t Be ‘Browbeaten’ Over Currency, Blankfein Says

Jan. 23 (Bloomberg) -- China’s national interests will converge with the rest of the world as its economy grows, and policy makers there shouldn’t be “browbeaten” for managing their currency in the meantime, Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein said.

“Is China wrong for doing that? No,” Blankfein said today at a panel discussion at the World Economic Forum in Davos, Switzerland. “Are those other countries wrong to object? No. But it’s hard to reconcile.”

The U.S. Treasury Department said in October that the Chinese yuan is “significantly undervalued,” while also declining to name China a currency manipulator. The People’s Bank of China outlined plans in November to end daily currency intervention as China’s ruling Communist Party attempts to modernize the economy.

Privatization efforts by China are vital as the nation becomes a larger part of the global economy, Blankfein, 59, said. For now, China’s “exceptionality” will create difficult situations, he said.

“The largest trader in the world has a managed currency,” Blankfein said. “That’s appropriate to the needs of China. And so the statement will come back, ‘Is it anybody’s business whether China’s currency is managed?’ Well, it’s the business of those to whose currencies it’s managed against. And so things like that have to be sorted out.”

To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net

To contact the editor responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.