Nov 12, 2010
SEOUL G-20 SUMMIT
PM Lee on G-20
By Rachel Chang
PRIME Minister Lee Hsien Loong weighed in on the global debate over currency values on Friday at the Group of 20 (G-20) summit in Seoul, saying that there is scope for emerging economies to allow their currencies to rise over the medium term.
Governments should look beyond the impact of such a move on their manufacturers and exports, and consider that doing so will raise the quality of life for their populations, he added.
Mr Lee was speaking at the first official session of the two-day meet, where many developing economies in Asia and Latin America are defending a reluctance to let their currencies rise in the wake of massive capital flows into these regions.
They fear this will make their exports less competitive and could derail a hard-fought economic recovery.
Critics like the United States, however, believe that countries such as China which undervalue currencies unfairly subsidise their exporters and worsen dangerous imbalances in the global economy.
Proposing a conciliatory view, Mr Lee told G-20 leaders that 'higher growth economies' in the developing world can afford to appreciate their currencies without undermining competitiveness.
SEOUL G-20 SUMMIT
PM Lee on G-20
By Rachel Chang
PRIME Minister Lee Hsien Loong weighed in on the global debate over currency values on Friday at the Group of 20 (G-20) summit in Seoul, saying that there is scope for emerging economies to allow their currencies to rise over the medium term.
Governments should look beyond the impact of such a move on their manufacturers and exports, and consider that doing so will raise the quality of life for their populations, he added.
Mr Lee was speaking at the first official session of the two-day meet, where many developing economies in Asia and Latin America are defending a reluctance to let their currencies rise in the wake of massive capital flows into these regions.
They fear this will make their exports less competitive and could derail a hard-fought economic recovery.
Critics like the United States, however, believe that countries such as China which undervalue currencies unfairly subsidise their exporters and worsen dangerous imbalances in the global economy.
Proposing a conciliatory view, Mr Lee told G-20 leaders that 'higher growth economies' in the developing world can afford to appreciate their currencies without undermining competitiveness.
