US Treasury's Brainard hopes to see more flexible yuan

Published 09/29/2010, 07:17 AM
Updated 09/29/2010, 07:20 AM

FRANKFURT, Sept 29 (Reuters) - The United States hopes to see more reforms that will allow greater flexibility of China's exchange rate, U.S. Treasury's point person on international affairs said on Wednesday.

"We hope to see greater balance in China's recovery with reforms that encourage domestic consumption and allow greater flexibility in its exchange rate," Undersecretary for International Affiars Lael Brainard said at the Goethe University in Frankfurt.

She also stresses global rebalancing will be discussed at the upcoming G20 meeting.

Asked during the question-and-answer session whether China's yuan policy would be on the agenda of the next G20 meeting in November, she said issues "associated with global rebalancing would be very high on the agenda."

"I do expect that rebalancing will be front and centre and that all the policies that are central to achieving rebalancing will also be on the agenda." (Reporting by Marilyn Gerlach and Sakari Suoninen; Editing by Ron Askew)

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