China yuan a subsidy, needs to rise -Bernanke

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China yuan a subsidy, needs to rise -Bernanke

Reuters – July 21 (Reuters) – U.S. Federal Reserve Chairman Ben Bernanke on Wednesday said China's currency policy effectively subsidizes that country's exports, giving fresh ammunition to China's critics in Congress.

Bernanke also said it was in China's best interest to further raise the value of its currency, known as either the renminbi or yuan.

"We would like to see them move considerably further so that it would both create a level playing field and also from the perspective of China, to give them a balanced domestic economy and more independence to their monetary policy."

But he made made clear that he thought congressional action was not the best way to get China to act.

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