Geithner: inflexible currencies are biggest monetary problem | Reuters

“…Both French President Nicolas Sarkozy and Chinese officials have said it is time to consider bringing the yuan into the basket of currencies that constitutes the SDR, which is currently restricted to the dollar, euro, yen and pound. Geithner suggested that certain conditions should be met first.

“We believe that currencies of large economies heavily used in international trade and financial transactions should become part of the SDR basket, and that to achieve this objective, the concerned countries should have flexible exchange rate systems, independent central banks, and permit the free movement of capital flows,” he said…”

via Geithner: inflexible currencies are biggest monetary problem | Reuters.

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One Response to Geithner: inflexible currencies are biggest monetary problem | Reuters

  1. More posturing from the West who still haven’t worked out that even if the RMB were to appreciate to 2 RMB to the $1 from 6.8 odd today, it would still be cheaper to make things in China than in most of Europe and all of the US. But it would of course ensure that Chinese people had to spend rather more time earning money to pay for food and not really closing the wealth gap….

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