Wednesday, June 13, 2007

Fed's Geithner Urges Asian Nations to Shift Focus From Currency Reserves

(Bloomberg) -- Federal Reserve Bank of New York
President Timothy Geithner urged Asian nations to shift their
focus away from accumulating foreign-exchange reserves and
concentrate on domestic price stability and demand growth.

Asia should ``make the necessary transition to stronger
domestic demand-led growth,'' Geithner said in a speech today at
an Economic Society of Singapore dinner. Swelling reserves ``are,
increasingly, signs of the allocative distortions that result''
from managed exchange rates, he said.


Read more at Bloomberg Currencies News

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