Geithner Says India Sets Example With Flexible Exchange Rate

U.S. Treasury Secretary Timothy F. Geithner said India is demonstrating economic “dynamism” that comes from promoting internal growth while allowing currency flexibility, even as he reiterated the need for “key emerging economies” to move to market-determined exchange rates.

Fast-growing developing nations need to reduce their dependence on exports to help the world economy strengthen, Geithner said in a guest column in the Hindustan Times. The Treasury chief has called on China to boost consumption and let the yuan rise, and today he praised India for its initiative in adjusting to the new shape of the global economy.