May 17 2005

Statement on Currency Report to Congress

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made the following statement on the U.S. Treasury report on the currency practices of our trading partners. The report said the fixed exchange rate China maintains “is a substantial distortion to world markets” but did not find them to be manipulating their currency. Graham said: “I hope the Bush Administration builds on this report and lets the Chinese know their currency must change or they will face severe consequences. “For the first time, the Administration has called what China is doing a ‘distortion.’ They are moving in the right direction and I applaud them for beginning to take a tougher line in dealing with the Chinese. But make no mistake, more must be done. “It’s pretty simple – China cheats. The Chinese manipulate their currency to gain an unfair advantage over the U.S. and other nations. The chorus of voices opposing what China is doing is expanding as the G-7 and European Union both accuse China of manipulating its currency. “We need to address this issue as soon as possible. It’s one thing if someone outworks or outsmarts us. But it’s not fair when someone is rigging the rules of the game to give them an unfair competitive advantage.” ####