China, Germany and South Africa criticize U.S. stimulus
November 7, 2010 - 0:0
German Finance Minister Wolfgang Schaeuble said the U.S. policy was ""clueless"" and would create ""extra problems for the world"".
The U.S. Federal Reserve could weaken the U.S. dollar and hurt exports to America.China's Central Bank head Zhou Xiaochuan urged global currency reforms, while South Africa said developing countries would suffer most.
South Africa's finance minister Pravin Gordhan warned that ""developing countries, including South Africa, would bear the brunt of the U.S. decision to open its flood gates without due consideration of the consequences for other nations.""
The U.S. policy ""undermines the spirit of multilateral co-operation that G20 leaders have fought so hard to maintain during the current crisis,"" he said.
The heads of state and government of the G20 group of the world's leading nations is due to meet in a week in South Korea, with currencies and trade imbalances high on the agenda.
The U.S. central bank announced on Wednesday that it would spend $600bn to buy government bonds, in the hope that the cash injection can kickstart the country's economy.
However, this weakens the dollar, making imports from around the world more expensive for U.S. consumers.
(Source: BBC)