China cannot resist upward yuan pressure-Geithner

Published 11/11/2010, 03:38 AM
Updated 11/11/2010, 03:40 AM

SEOUL, Nov 11 (Reuters) - China cannot continue to resist upward market pressure on its yuan currency without facing higher inflation and rising asset prices, U.S. Treasury Secretary Timothy Geithner said on Thursday.

Geithner, in an interview with CNBC television here, said he believed there had been progress on China currency issues and authorities in Beijing believed that it was important to let the appreciation process continue.

"If you resist those market forces that are just a reflection of confidence that you're going to see strong growth in China, strong productivity growth in China, if you resist those market forces, that pressure is not going to go away," Geithner said. "It's just going to end up in higher inflation or higher asset prices and that'll be bad for China. (Reporting by David Lawder; Editing by Tomasz Janowski)

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