Geithner talks “focus on yuan”

%3CFONT%20face%3DVerdana%3EVice-Premier%20Wang%20Qishan%20held%20talks%20with%20US%20Treasury%20Secretary%20Timothy%20Geithner%20on%20economic%20ties%20on%20Sunday%20after%20a%20meeting%20of%20the%20Group%20of%2020%20finance%20ministers%20in%20South%20Korea%20vowed%20to%20avoid%20a%20global%20currency%20war.%3CBR%3EThe%20impromptu%20meeting%20between%20Wang%20and%20Geithner%2C%20who%20are%20designated%20special%20representatives%20of%20their%20respective%20presidents%20on%20economic%20issues%2C%20also%20covered%20preparations%20for%20the%20Seoul%20G20%20summit%20scheduled%20for%20Nov%2011-12%2C%20according%20to%20a%20Xinhua%20News%20Agency%20report%2C%20which%20did%20not%20elaborate.%3CBR%3EThe%20meeting%20was%20held%20at%20Qingdao%20airport%2C%20Shandong%20province%2C%20during%20a%20stop-off%20for%20Geithner%20after%20he%20attended%20a%20two-day%20meeting%20of%20G20%20finance%20ministers%20and%20central%20bank%20governors%2C%20which%20ended%20on%20Saturday%2C%20in%20Gyeongju%2C%20South%20Korea.%3CBR%3EOfficials%20at%20the%20meeting%20agreed%20in%20principle%20to%20refrain%20from%20tit-for-tat%20currency%20devaluations%20and%20reduce%20trade%20and%20financial%20imbalances.%20They%20also%20agreed%20to%20give%20China%20and%20other%20major%20developing%20countries%20a%20bigger%20role%20in%20managing%20the%20global%20economy.%3CBR%3EPang%20Zhongying%2C%20an%20expert%20on%20international%20relations%20at%20Renmin%20University%20of%20China%2C%20said%20%22Wang%20and%20Geithner%20might%20have%20discussed%20their%20stance%20on%20currencies%2C%20especially%20the%20yuan%2C%20before%20the%20opening%20of%20the%20G20%20summit%20next%20month%22.%3CBR%3EGeithner%2C%20Pang%20added%2C%20might%20have%20sought%20to%20see%20how%20much%20more%20the%20yuan%20would%20appreciate%2C%20something%20the%20US%20has%20been%20pressing%20for.%3CBR%3EWashington%20has%20claimed%20that%20economic%20imbalances%20are%20the%20source%20of%20the%20global%20financial%20crisis%20and%20US%20economic%20problems%2C%20and%20suggests%20appreciation%20of%20the%20yuan%20is%20the%20solution.%3CBR%3EThe%20upcoming%20G20%20summit%20in%20Seoul%20will%20focus%20on%20the%20currency%20issue%2C%20including%20the%20yuan%20dispute%2C%20Pang%20said.%3CBR%3EThe%20US%20has%20complained%20about%2C%20what%20it%20terms%2C%20intervention%20by%20some%20countries%20in%20their%20foreign%20exchange%20markets%20to%20prevent%20currency%20appreciation%2C%20and%20it%20has%20also%20sought%20to%20limit%20the%20trade%20surpluses%20of%20other%20countries%20in%20a%20bid%20to%20increase%20US%20exports.%3CBR%3EHowever%2C%20many%20emerging%20markets%20are%20suspicious%20that%20the%20US%20has%20deliberately%20allowed%20the%20dollar%20to%20depreciate%20to%20benefit%20its%20exports.%20The%20dollar%20index%20has%20slumped%20to%20about%2073%20from%20113%20since%202002.%3CBR%3EThe%20dispute%20between%20the%20US%20and%20emerging%20countries%20is%20seen%20to%20be%20a%20possible%20prelude%20to%20a%20global%20currency%20war.%3CBR%3EAfter%20all-night%20talks%2C%20the%20meeting%20on%20Saturday%20reached%20an%20agreement%20to%20%22refrain%20from%20competitive%20devaluation%20of%20currencies%22%20and%20aim%20for%20%22more%20market-determined%20exchange%20rate%20systems%22.%3CBR%3EThe%20ministers%20and%20central%20bankers%20vowed%2C%20in%20a%20statement%2C%20to%20%22pursue%20the%20full%20range%20of%20policies%20conducive%20to%20reducing%20excessive%20imbalances%20and%20maintaining%20current%20account%20imbalances%20at%20sustainable%20levels%22.%3CBR%3EInternational%20Monetary%20Fund%20chief%20Dominique%20Strauss-Kahn%20said%20the%20G20%20ministers%20had%2C%20in%20parallel%2C%20struck%20a%20%22very%20historic%22%20deal%20to%20revamp%20the%20organization%20to%20give%20China%20and%20other%20emerging%20powers%20a%20greater%20say.%3CBR%3EUnder%20the%20deal%2C%20Europe%20agreed%20to%20cede%20two%20seats%20on%20the%20IMF%20board%20to%20accommodate%20developing%20nations.%20Brazil%2C%20Russia%2C%20India%20and%20China%20will%20all%20rank%20among%20the%20top%2010%20IMF%20shareholders%2C%20with%20China%20third%20after%20the%20US%20and%20Japan.%3CBR%3EThe%20US%20would%20continue%20to%20enjoy%20a%20one-vote%20veto%20power%20within%20the%20IMF.%3CBR%3EAnalysts%20said%20the%20agreement%20reached%20in%20South%20Korea%20has%20achieved%20only%20%22limited%22%20progress%20with%20%22empty%22%20words%20and%20it%20is%20hard%20for%20its%20members%20to%20reach%20a%20workable%20consensus%20in%20the%20upcoming%20summit.%3CBR%3EChen%20Gong%2C%20chief%20economist%20at%20Anbound%20Consulting%20in%20Beijing%2C%20said%20the%20meeting%20of%20the%20finance%20ministers%20%22failed%20to%20reach%20a%20concrete%2C%20workable%20agreement%20to%20translate%20their%20words%20into%20actions%22.%3CBR%3EThe%20statement%20issued%20after%20the%20meeting%20said%20advanced%20economies%2C%20that%20have%20reserve%20currencies%2C%20must%20avoid%20currency%20fluctuations%20that%20result%20in%20mass%20capital%20inflows%20into%20emerging%20markets.%3CBR%3EAt%20the%20meeting%2C%20Finance%20Minister%20Xie%20Xuren%20urged%20%22major%20reserve%20currency%20countries%20to%20take%20responsible%20economic%20policies%20to%20ensure%20global%20financial%20stability%22.%3CBR%3EThe%20US%20Federal%20Reserve%20said%20it%20is%20prepared%20to%20loosen%20monetary%20policy%20if%20the%20economy%20remains%20weak.%20However%2C%20Rainer%20Bruederle%2C%20German%20finance%20minister%2C%20told%20the%20meeting%20that%20the%20Fed%27s%20push%20toward%20easier%20monetary%20policy%20is%20the%20%22wrong%20way%22%20to%20stimulate%20growth%20and%20may%20amount%20to%20a%20manipulation%20of%20the%20dollar.%3CBR%3E%3C/FONT%3E