The Prime Minister, Dr Manmohan Singh, has ruled out any differences between China and the United States over the currency devaluation, saying the two nations have very intimate relations and the exchange rates controversy will affect them very substantially.
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Giving his comments on the valuation of the Chinese currency, Dr Singh said Chinese have the surplus, which, no body can contradict. "Well, Chinese have the surplus which is I think, no body can deny, but the relation between surplus countries and deficit countries is not a technical issue. If you go back to the Bretton Woods debate, there was at that very time, there was a Keynes plan, there was a White Plan, and Keynes was of the view that surplus countries have as much responsibility to take adjustment measures as the deficit countries," said Dr Singh.
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Giving his comments on the valuation of the Chinese currency, Dr Singh said Chinese have the surplus, which, no body can contradict. "Well, Chinese have the surplus which is I think, no body can deny, but the relation between surplus countries and deficit countries is not a technical issue. If you go back to the Bretton Woods debate, there was at that very time, there was a Keynes plan, there was a White Plan, and Keynes was of the view that surplus countries have as much responsibility to take adjustment measures as the deficit countries," said Dr Singh. "But the international financial mechanism is essentially a power mechanism, and the way the international financial system functions, so far creditors countries have always been able to have their way," he added.
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Prime Minister rules out differences between US-China over currency devaluation - Sify