ECB calls for China FX policy Change

European Central Bank policymaker and Austrian Central Bank governor Ewald Nowotny sees a strong need from the macroeconomic side to have changes in the exchange rate policy of China.

In an interview with the Financial Times published on its Web site, Nowotny said: "I think there is a strong need from the macroeconomic side to have changes in the exchange rate policy of China because economically it's very problematic for a country to have huge surpluses in the current account."

Referring to the comparatively high valuation of the euro, Nowotny said, "developments have not been disruptive up till now, but one has to observe this very carefully."

For more: ECB Calls For China FX Policy Change - NYTimes.com