November 09, 2007

Statement of Chairman Dodd in Response to Remarks by Chinese Officials

“I am troubled by the fact that the value of the American dollar has been significantly affected by reports that Chinese officials plan to diversify their almost $1.5 trillion of currency reserve. What’s more troubling is the Bush Administration’s economic irresponsibility that has put the dollar in such a precarious position. Reckless tax cuts for the wealthy and endless spending on the disastrous Iraq war have pushed America further and further into debt, allowing China to accumulate massive holdings of American debt to manipulate the value of the yuan and now move the price of the dollar. “Meanwhile, the Treasury Department has thus far refused to acknowledge China’s currency manipulation. The Treasury Department has not even submitted their most recent exchange rate report, which was due to the Senate Banking Committee almost a month ago. If Treasury will not act, Congress must. Senator Shelby and I have introduced a bill that will put American currency manipulation policy where it belongs – on the side of American workers and businesses. It was passed by the Banking Committee with overwhelming bi-partisan support, and I hope that the full Senate will act quickly to enact this legislation. America’s companies and workers deserve a level playing field.”