Bernanke Reiterates Criticism of China Yuan Policy

Federal Reserve Chairman Ben S. Bernanke reiterated his criticism of China’s limits on the yuan, saying countries with large trade surpluses should let their currencies appreciate to aid the global economy.

“The maintenance of undervalued currencies by some countries has contributed to a pattern of global spending that is unbalanced and unsustainable,” Bernanke said without identifying China in a speech today in Paris. Those countries “will need to allow their exchange rates to better reflect market fundamentals and increase their efforts to substitute domestic demand for exports.”