Describing China’s policies as having the “effect of keeping the Chinese currency substantially undervalued”, US Treasury Secretary Timothy Geithner said in a speech in Washington that the devalued yuan threatened growth.
“If China does not allow the currency to appreciate more rapidly, it will run the risk of seeing domestic inflation accelerate and face greater risk of a damaging rise in asset prices, both of which will threaten future growth,†Geithner said.
Source: Bloomberg
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