Obama Uses Tough Language On Chinese Currency

President Obama pressed hard on Chinese president Hu and his country's unwillingness to revalue its currency at the White House Wednesday. While Obama openly told Hu the U.S. welcomes the increasing flexibility of China's currency, the Yuan or Remimbi (RMB), he also specifically addressed the fact that the currency remains undervalued and that it could be a tool for China to dampen down their inflationary pressures.

An undervalued Yuan creates cheap Chinese imports in the United States, but also creates a poor market in China for U.S. made goods.

"The RMB is undervalued. The Chinese government has intervened very forcefully in currency markets.
They've spent $200 billion just recently and that's an indication of the degree to which it's still undervalued," Obama said Wednesday at a joint press conference at the White House.

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