Tags: IMF | China | Flexible | Yuan

IMF Says China Should Be More Flexible on Yuan

Wednesday, 03 Mar 2010 02:46 PM

 

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.

© 2015 Thomson/Reuters. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Texas GOP Chief Leaves Role, Joins Rand Paul Political Team

Thursday, 29 Jan 2015 18:48 PM

The chairman of the Republican Party of Texas is stepping down from his role to join Sen. Rand Paul's likely presidentia . . .

Former Romney Staffer David Kochel Joins Bush Team

Thursday, 29 Jan 2015 18:31 PM

Republican strategist David Kochel, who previously worked on both of Mitt Romney's failed presidential campaigns, is joi . . .

Fallout from Iowa: Trump Speech Drew Greatest Response

Thursday, 29 Jan 2015 18:03 PM

The dust may still be settling on the opening showdown of candidates from last weekend's 2015 Iowa Freedom Summit, but o . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

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