US calls China currency appreciation powerful tool | Reuters

WASHINGTON | Mon Oct 31, 2011 11:15am EDT

WASHINGTON Oct 31 (Reuters) - China's move to allow its currency to appreciate is a "powerful tool" to encourage domestic demand, a top U.S. Treasury official said on Monday.

"As we look at the rebalancing agenda, emerging market economies that have surpluses will continue to move forward on their commitments to rebalance demand by allowing their exchange rates to appreciate in line with market forces -- which is the most powerful tool they have to encourage the pivot to domestic consumption-led growth," said Under Secretary for International Affairs Lael Brainard.

Source http://feeds.reuters.com/~r/reuters/USdollarreportNews/~3/iKNZkCaE7NE/china-usa-currency-idUSWNA217920111031



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