Bank of Canada says China FX policy "great risk"

Published: 28 Oct 2009 14:04:29 PST

OTTAWA, Oct 28 - China's foreign exchange policy poses a great risk and it is a top priority of global policymakers to work towards ensuring it changes, Bank of Canada Governor Mark Carney said on Wednesday.

"They are running a great risk with this policy. It is a cause of some of the imbalances in the global economy. It is a contributing factor to some of the vulnerabilities that have existed and were realized," he told a Senate committee.

"It is a top priority I think for all policymakers to work with the Chinese and develop a suite of policies across all major economies, including China, that are consistent with moving off of this policy."