News / Asia

UN: Rapid Rise in China's Yuan Could Stall Global Recovery

A Chinese woman, who sells clothes on the roadside, holds tens of Yuan, while dealing with a customer, in a Hutong, or a traditional alleyway, in Beijing, China, 22 Jun 2010
A Chinese woman, who sells clothes on the roadside, holds tens of Yuan, while dealing with a customer, in a Hutong, or a traditional alleyway, in Beijing, China, 22 Jun 2010
Ron Corben

The chief of the United Nations Conference on Trade and Development (UNCTAD) says pressuring China to revalue its currency could stall the global economic recovery. Supachai Panitchpakdii also expects Asia's currencies to continue rising against the dollar because of the capital flowing into the region.

UNCTAD Secretary-General Suapchai Panitchpakdii said Friday that international pressure on China to revalue its currency is counterproductive.

China faces pressure from the United States, Europe and Asia to allow the yuan to appreciate. Critics say China's government deliberately keeps the yuan undervalued to protect its export industries.

Supachai says forcing a rapid appreciation of the yuan, also called the renminbi, could cause turmoil in markets, and stall both China's economic growth and the global recovery.

Supachai Panitchpakdii UNCTAD Secretary General
Supachai Panitchpakdii UNCTAD Secretary General

"If you say we force currencies to go up by 20 percent - there's no control on speculation - it just destroys the whole market.  If it happens, it would drive down economic growth in China and it would destroy the whole global recovery. So it's not only the question [of] renminbi and the U.S. and China. No, it's about global growth," he said.

Supachai, who attended a conference marking the 50th anniversary of Thailand's national airline, Thai Airways International, says regional currencies will continue to strengthen.

That is because foreign capital is flowing in to take advantage of the region's healthy economy.

"Fund flows into Asia would still be increasing at tremendous rates," added Supachai.  "[It] will not be receding quickly. So balance of payments just strongly in surplus in Asia - reserves of more than $5 trillion in Asia.  [That] all points in the direction of strong fundamentals, which would actually result in strong currencies. That is the order of the day."

Across Asia, export industries have been lobbying governments to take steps to weaken currencies.

Supachai says that one concern in Asia would be abrupt changes in currency movements, which could trigger market instability. But he also calls for Asia to be less dependent on exports. More attention, he says, needs to be raising domestic consumption and wages in line with productivity gains.

Supachai's comments came as China's leaders on Friday criticized the U.S. for demanding the yuan appreciate. They said China should not be made the scapegoat for the United States' economic problems.

You May Like

Is Air Travel Safe?

Aviation expert says despite tragic losses of Malaysian Airlines flights 370 and 17, industry experienced lowest fatality rate in recorded history last year More

Multimedia 100 Days Later, Nigerian Girls Still Held

Activists holding rallies in Nigeria and several other countries to mark 100th day of captivity for more than 200 schoolgirls being held by Boko Haram More

Chocolate Too Bitter? Swap Sugar for Mushrooms

US food technology company develops fermentation process using mushrooms to reduce bitterness in cocoa beans, believes it will cut sugar content in candy More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Carriers Suspend Travel to Israeli
X
Carolyn Presutti
July 23, 2014 1:21 AM
The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video US Carriers Suspend Travel to Israel

The United States is prohibiting American carriers from flying to Israel's airport in Tel Aviv for 24 hours, because of rising violence between Israel and Hamas militants. The action was announced on Tuesday, after a rocket fired by Hamas militants in the Gaza Strip landed near the airport. As VOA's Carolyn Presutti tells us, international officials soon may have to determine which combat zones are too dangerous for commercial flights.
Video

Video NASA Focuses on Earth-Like Planets

For decades, looking for life elsewhere in the universe meant listening for signals that could be from distant civilizations. But recent breakthroughs in space technology refocused some of that effort toward finding planets that may harbor life, even in its primitive form. VOA’s George Putic reports on a recent panel discussion at NASA’s headquarters, in Washington.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.

AppleAndroid