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M. Continuo

More flexible forex will help fix imbalances: Geithner


    PARIS (Reuters) - Treasury Secretary Timothy Geithner said on Saturday that Group of 20 nations were moving gradually to find ways to reduce global economic imbalances and said flexible exchange rates would help the process.

    In prepared remarks at the end of a two-day meeting of G20 finance leaders, Geithner repeated that China's yuan was undervalued and said all major nations will be needed to contribute to reduce imbalances.

    "There is broad consensus that the major economies, not just Europe, Japan and the United States, but also the large emerging economies need to allow their exchange rates to adjust in response to market forces," Geithner said.

    (Reporting by Glenn Somerville, editing by Mike Peacock)