ECB's Nowotny sees case for China to change FX policy-paper
2010-01-25 07:25 (UTC)
FRANKFURT, Jan 25 (Reuters) - The European Central Bank policymaker and Austrian Central Bank governor Ewald Nowotny sees a strong need to have changes in the exchange rate policy of China.
In an interview with the Financial Times published on its Web site on Monday, Nowotny said: 'I think there is a strong need from the macroeconomic side to have changes in the exchange rate policy of China because economically it's very problematic for a country to have huge surpluses in the current account.'
Referring to the comparatively high valuation of the euro he mirrored comments he made in an recent interview with Reuters .
'Developments have not been disruptive up till now, but one has to observe this very carefully.'
He added that, 'The traditional way to get out of recession has been upswing in export side. Here we see certain problems if there is a tendency of longer-term revaluation of the euro, not only vis-a-vis the dollar but also vis-a-vis Asian currencies.'
2010-01-25 07:25 (UTC)
FRANKFURT, Jan 25 (Reuters) - The European Central Bank policymaker and Austrian Central Bank governor Ewald Nowotny sees a strong need to have changes in the exchange rate policy of China.
In an interview with the Financial Times published on its Web site on Monday, Nowotny said: 'I think there is a strong need from the macroeconomic side to have changes in the exchange rate policy of China because economically it's very problematic for a country to have huge surpluses in the current account.'
Referring to the comparatively high valuation of the euro he mirrored comments he made in an recent interview with Reuters .
'Developments have not been disruptive up till now, but one has to observe this very carefully.'
He added that, 'The traditional way to get out of recession has been upswing in export side. Here we see certain problems if there is a tendency of longer-term revaluation of the euro, not only vis-a-vis the dollar but also vis-a-vis Asian currencies.'