16 Jan '11, 6pm

Hu talks tough on currency ahead of US visit

WASHINGTON: President Hu Jintao issued veiled criticism Sunday of US monetary policy before a state visit to the United States seen as a chance for China's leader to shore up his political legacy. Responding to written questions from The Wall Street Journal and The Washington Post, Hu came out fighting on by far the most contentious economic issue affecting relations between the two world powers: currency. Highlighting the dollar's dominance, he implicitly criticised the Fed's recent decision to pump 600 billion dollars into the US economy, a move attacked by some as coming at the expense of other countries' exports. "The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the US dollar should be kept at a reasonable and stable level," Hu said. While dubbing the international currency system a "produ...

Full article: http://www.channelnewsasia.com/stories/afp_world_business...

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