Treasury Secretary Timothy F. Geithner has stated that he has confidence in China, saying that, for its own interest, the country will eventually choose to have a stronger currency. He further added that United States is striving to “maximize the chance” to help China move quickly on the yuan.

Talking in an interview on Bloomberg Television yesterday, Geithner said that China is in need of an economy that is controlled less by exports to the United States and more by domestic demand.

The Treasury Secretary said, “Our strategy is going to be designed to increase the odds that China does decide to do what’s in their interest, which is to let their currency start to move up again, and that’ll be part of making sure we have a more healthy global recovery in place”.

Derek Scissors, who is a Washington-based research fellow for Asia Economic Policy at the Heritage Foundation, said that it is in all probability true that Washington and Beijing have reached an agreement, because of which, the United States will not put a “currency manipulator” tag on China and China, in return, will plan out a sort of yuan policy modification, probably by the end of the Strategic and Economic Dialogue, which would take place around May.