An uphill task for the Obama administration seems to be convincing the world about the authenticity of the strong dollar policy. The new US government has plans to borrow $2 trillion to stabilize it staggering economy.

According to analysts, the real test for the Obama government would be to support the value of dollar without any direct manipulation in the markets. This has to be done keeping in mind the deteriorating economic situation, zero interest rates, increasing current deficit.

At the same time there is another big challenge for the government. The strong dollar policy has to be given a shape without antagonizing China, which is the biggest holder of the US Treasury debt. There would always be a fear that other countries could ditch the dollar.

U. S. Treasury secretary, Timothy Geithner, while stressing the need for a stronger dollar also said the administration would be vigilant against currency manipulation, especially from China.

"It has to be done very carefully," said Frank Vargo, vice president for international economic affairs at the NAM. "You know the world has changed a lot with the financial crisis and China has a lot in U. S. Treasuries. This needs to be done in a cooperative, not a confrontational, way."