Call for change in Chinese policy

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, 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, he said: "Developments have not been disruptive up till now, but one has to observe this very carefully."

Mirroring recent comments he made in an interview with Reuters, Nowotny added that the high valuation of the euro may have an impact on economic recovery. "The traditional way to get out of recession has been upswing in export side."

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