Thursday, November 11, 2010

G20 Summit: China Flatly Rejects Proposals and Accuses U.S. Of Devaluing the Dollar

A major Brazilian newspaper reports that today at the G20 summit today Chinese authorities have rejected an attempt to set limits for external imbalances, defended the firm control of the yuan, and accused the U.S. of provoking a destabilizing flows of short-term capital to developing countries.

Chinese President Hu Jintao said China is determined to continue with the reform of the exchange rate system, but the change is gradual and requires "a healthy external environment,".

Speaking at the same press conference during the two-day summit of the G-20, in Seoul, South Korea, an official of the Ministry of Foreign Affairs, Chen Xu, said numerical targets to control the current account balances would be inappropriate.

The current account balances are just indicators of deeper imbalances and are difficult to control due to the different conditions of various countries," .

At the same time, Yu Jianhua, Department of International Trade and Economic Affairs of Chinese Ministry of Commerce, said China is not seeking a "confrontation" with the U.S. on trade issues and exchange. Jianhua also said to be optimistic about the development of economic relations between the two countries.

The group of Chinese officials addressed crucial issues facing the G-20, which is trying to avoid a "currency war" global, seeking a more balanced global growth and a "competitive devaluation" of currencies..

China says that the policy of the Federal Reserve (Fed, the U.S. central bank) to inject $ 600 billion in cash into the economy helps reduce the dollar value

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