US Geithner: Sees China Resuming Forex Reform, In Their Interest

   By Tom Barkley 
   Of DOW JONES NEWSWIRES 
 

WASHINGTON -(Dow Jones)- U.S. Treasury Secretary Timothy Geithner said Friday he expects China to resume exchange-rate reforms because it's in the country's interest.

"This is China's choice," Geithner said during a briefing following the G-20 meeting. "And I believe that China will decide it's in their interest to renew the reform process, to resume the process of exchange-rate reform that they had embarked on."

While Canadian Finance Minster Jim Flaherty said currencies didn't come up during meetings between G-20 finance ministers and central bankers, Geithner said "the broad constellation of policies" necessary to fix global imbalance were discussed.

Geithner cited "broad consensus" around the basic framework of policies that G-20 leaders agreed to pursue in Pittsburgh last fall to rebalance growth.

As part of that effort, Geithner said he was encouraged by moves by emerging-market economies like China, India and Brazil to shift toward domestic-led growth. In addition, the U.S. planned to start bringing down its budget deficit next year, he said.

-By Tom Barkley, Dow Jones Newswires; 202-862-9275; tom.barkley@dowjones.com

(END) Dow Jones Newswires

April 23, 2010 19:10 ET (23:10 GMT)

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