UN backs China foreign exchange rate policies

The UN Conference on Trade and Development backed China's foreign exchange rate policies yesterday. In its report, the agency said that leaving the Renminbi exchange rate to rely totally on market forces would bring brutal risks to the global economy.

The hands-off currency policy promoted by international financial organizations and lenders in the 1980s and 1990s proved to be a failure for many developing nations. The UK Sunday Telegraph has also published an article saying western countries, especially the United States, should look first at themselves before laying blame with developing countries.

IMF economist Olivier Blanchard, said a hypothetical 20 percent revaluation of Renminbi and other main Asian currencies could only contribute to a slight increase in US exports.