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God'sgurl1
11-09-2011, 01:40 PM
Monetary Fund, for fear of "a spiral of financial instability in the world"


09 November, 2011 09:31:00
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Warned the Director-General of the International Monetary Fund Christine Lagarde on Wednesday in Beijing, "the danger that a spiral of financial instability in the world" that does not move the world's economies together to address the debt crisis in Europe and the risk of a recession in the economy.
Lagarde has warned that "Asia is not immune" and called on China to let the yuan rise at the level of the Chinese currency, the low value for the actual reason behind the huge trade surplus accumulated in Beijing.
Lagarde said in a speech at the beginning of two-day visit to China, "if we do not act together, the world economy is in danger of entering into a spiral of uncertainty and financial instability," in reference to the debt crisis and the risk of a recession.
She stressed that "the world economy entered a phase of serious Pttoradtha can not predict."
And commented on the EU summit that approved at the end of October a plan to help save the euro and Greece also requested the help of China, said that "the Brussels meeting was a step in the right direction."
Lagarde and went to Beijing in the first visit to this country as the Director General of the International Monetary Fund. We will discuss with Chinese officials the consequences of the European debt crisis and the conditions that can drive the second economic power in the world to buy more debt securities in Europe.
Lagarde, visited Moscow, where prior to that discussed with Russian leaders the consequences of the economic crisis on their country.
And go to Japan after China.
China has the largest reserves of foreign currency in the world up to 3200 billion dollars, followed by Japan in second place.
Lagarde said that "China needs a stronger currency," at a time is a major trading partners to Beijing that the price of the yuan low, although the actual value of the revaluation of 7% for the dollar between June 2010 WAP / August 2011.
The Chinese economic officials to increase the future flexibility of the yuan and increase imports to balance trade, but they do not want at present to cause risk: for exporters, who remains a narrow margin to move in front of them.
She considered Lagarde said "China is taking the right way to redirect its economy to focus on domestic demand", at the time remains the growth of the Chinese economy is particularly dependent on investment and exports does not depend much on household consumption.
Lagarde said that "China is a key player in the Group of Twenty, as well as the International Monetary Fund," where it must "play a bigger role and stronger voice heard" in reference to ongoing reforms in the shares of contributing to the funding and voting rights in the International Monetary Fund.
Under this reform, which starts when approved in December / last December, China will become the third country in terms of voting rights in the Fund and it will increase its financial contribution from 3.65% to 6.07%.


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glk
11-09-2011, 02:20 PM
Thanks GG for the post ! I'm still wondering if the IMF will revalue several countries at the same time including Iraq ??

Got-UR-back dino
11-09-2011, 02:56 PM
Good question, glk. China may be the 800-pound gorilla in the room they are waiting for. IMF is probably giving a sobering reminder that if China loses their European and American customers because their economies crash, about 1.4 billion Chinese will be circling the drain right behind. Enough is enough of keeping the yuan artificially low. And the iqd and the vnd among others.
Thanks Gg1.