Tags: IMF | China | Flexible | Yuan

IMF Says China Should Be More Flexible on Yuan

Wednesday, 03 Mar 2010 02:46 PM

 

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
China should be more flexible on its currency and encourage more domestic consumption, a senior International Monetary Fund (IMF) official said on Wednesday, as pressure builds on Beijing to revalue the yuan.

The yuan is pegged to the U.S. dollar at a level that supports Chinese exports, raising concerns of global economic imbalances where the West runs up huge debts to fund consumption of Chinese-made goods while Asia racks up sky-high savings.

"Currency flexibility is important," IMF deputy managing director Murilo Portugal told a business gathering in Sydney.

"There is also a need to move towards generating more internal demand and not just depend on exports," he said when asked if China needed to be more flexible with its currency.

The United States and other countries complain that China is keeping its currency undervalued, unfairly helping its exporters.

The IMF has for some time argued that China's exchange rate is too low and this year IMF chief Dominique Strauss-Kahn said the yuan was "really significantly undervalued."

The IMF expects Asia, especially China, to lead the world in the current economic recovery.

Portugal, who expected global imbalances to widen in the medium term, said China needed to invest more in its social sector and reform its financial sector.

Likewise, the United States also needed to invest in the tradeables sector, rather than depend on domestic consumption to help its way out of an economic slump, he added.

© 2014 Thomson/Reuters. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

NY Gov. Cuomo Signs Law to Rig Electoral College

Wednesday, 16 Apr 2014 22:54 PM

The campaign to effectively end the Electoral College's role in presidential elections has received an additional boost  . . .

Conservative Editor: GOP Problem With Hispanics Is Within Party

Wednesday, 16 Apr 2014 19:40 PM

Jeb Bush called illegal immigration an "act of love." Rand Paul said the Republican Party needs to get "beyond deportati . . .

Paul, Rubio Lead Potential Republican 2016 Contenders in Spending

Wednesday, 16 Apr 2014 19:29 PM

Groups supporting Senators Rand Paul and Marco Rubio lead the pack of potential Republican presidential candidates in sp . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved