Currency is a top priority for the Obama Administration, as unfair practices can affect the competitiveness of American businesses and workers, and can hold back global economic growth.  Since taking office, President Obama and Secretary Lew have consistently stressed that no country should expand its exports based on a persistently undervalued exchange rate.​

Secretary Lew made clear in yesterday’s Senate Committee on Finance hearing that “we are second to none in pushing back on unfair practices.”

In his testimony before the House Ways and Means Committee on Tuesday the Secretary also said: “We take the issue of currency very, very seriously.  We do it in the G7, in the G20, in our bilateral discussions, and we look forward to working with Congress.”

Treasury’s efforts have already produced tangible results.  In fact, our efforts to address currency issues with our foreign counterparts through respected international fora for negotiation and dialogue such as the G-7, the G-20, and the International Monetary Fund (IMF), have already led to historic commitments and measurable progress.  

•  In 2013, the G-7 member countries publicly affirmed that their economic policies would be focused on supporting their economies, and not targeting their currencies.  
• The G-20 member countries publicly committed to move more rapidly to more market-determined exchange rates, avoid persistent exchange rate misalignments, refrain from competitive exchange rate devaluations, and not target exchange rates for competitive purposes. 
•   Secretary Lew secured a commitment for the first time that China would reduce foreign exchange intervention, and we have seen China’s currency appreciate significantly over the past five years.

We believe that this strategy of engagement has been, and will continue to be, effective – but we know we need to stay vigilant in our engagement.  The Treasury Department and the Administration more broadly will continue to work with Members of Congress and partners around the world so that American workers and businesses compete on a level-playing field, because we are firmly committed to taking the necessary steps to promote market determined exchange rates.

Betsy Bourassa is a Media Affairs Specialist at the U.S. Department of the Treasury.