FINANCIAL TIMES: Forcing Beijing to revalue its currency would lead to a “disaster for the world”, Wen Jiabao, China’s premier, has warned amid increasing tensions over efforts by governments and central banks to hold down their exchange rates.
Speaking in Brussels, Mr Wen hit back at international criticism of China’s currency policy, saying that acceding to demands for a faster rise in the renminbi could cause social unrest in China… .
Tim Geithner, US Treasury secretary, said that intervention was contagious. “When large economies with undervalued exchange rates act to keep the currency from appreciating, that encourages other countries to do the same,” he told a conference in Washington. … (more)
