The global response to the decision of the Federal Reserve, the U.S. central bank, to inject another $ 600 billion in the U.S. economy gained momentum Friday, with officials from Asia and Europe vowing to discuss the measure at the G-20 this week.
The finance minister of Germany, Wolfgang Schäuble, has criticized the Fed's plan to buy more bonds, arguing that it undermines efforts to balance the foreign exchange market.
Statements of Schäuble occurred at the end of a week the euro reached $ 1.4281 hit in U.S. - the highest level since Jan. 20. The common European currency has gained 15% against the dollar since late June.
"What the U.S. accuse China of doing, they are doing by different means," he said.
Bloomberg News
The finance minister of Germany, Wolfgang Schäuble
The U.S. has pressed China to let its currency, the yuan, to appreciate more quickly, arguing that China's monetary policy is hurting the industry and creating unemployment in other countries. Last month, the U.S. Treasury Department has adopted a softer stance against Beijing, opting to postpone disclosure of a report outlining whether China and other countries are "manipulating" their currencies.
The Treasury said the yuan has risen more than 1% per month since September 2, a rhythm that, "if sustained (...), will help to correct" what the U.S. considers to be an artificially undervalued currency.
China itself has issued an ambiguous trial on the decision announced by the Fed on Wednesday, starting a new round of asset purchases - a tactic known as "quantitative easing" - an attempt to boost demand and keep interest rates down.
"Many countries fear the impact of this policy on their economies," he said at a news conference in Beijing vice-minister of Foreign Affairs of China, Cui Tiankai, the chief negotiator of the country in the G-20. The leaders of the Group of 20 industrialized and developing countries will meet in Seoul this week.
"It would be appropriate for someone to take forward and give us an explanation, or international confidence in the recovery and growth of world economy could be harmed," said Cui. He added that the U.S. "must in some sort of explanation."
But in another event on Friday, the president of China's central bank, Zhou Xiaochuan, said he communicates regularly with the Fed and is sympathetic to the course he is taking. "We can understand many of their arguments," he said.
Zhou said that although he is concerned about the effect of new policies on other countries, knows that the Federal Reserve is responsible for the American economy. "
On Friday, the Fed chairman, Ben Bernanke, defended the new round of stimulus and emphasized that U.S. economic health is crucial to the global recovery. He also suggested that the strategy will give more support to the dollar in the long term.
Bernanke said: "We certainly know that the dollar has a special role in the global economy, international financial markets and the international financial system."
Several other countries have expressed concern that the Fed's decision to further enhance its currency and causing inflation in certain assets.
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