US Treasury Secretary Yellen: IMF, World Bank reflect American values, counterweigh to China
“In the face of what’s likely to be Republican skepticism when she testifies on Capitol Hill, Yellen will laud institutions like the International Monetary Fund (IMF) and the World Bank (WB) that ‘reflect American values,’” said Bloomberg early Tuesday in Asia as it released transcript of US Treasury Secretary Janet Yellen’s scheduled Testimony in front of the House Financial Services Committee, up for publishing later in the US Session.
The news also adds that the Treasury chief’s remarks showcase the battle lines between the world’s two largest economies as they vie for influence in the developing world.
More comments
Our leadership at these institutions is one of our core ways of engaging with emerging markets and developing countries.
The IFIs (International Financial Institutes) provide real resources to tackle the challenges the world faces — from weathering economic storms to spurring long-term economic development.
Serves as an important counterweight to nontransparent, unsustainable lending from others, like China.
FX implications
The news challenges the market sentiment and allows the US Dollar to lick its wounds, while challenging the Gold Price, ahead of the US inflation data. That said, the US Dollar Index (DXY) struggles to defend the week-start rebound near 103.65 while the Gold Price stays depressed near $1,960 at the latest.
Also read: Gold Price Forecast: XAU/USD stays defensive near $1,965 hurdle ahead of US inflation
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
