Sudden yuan change poses risks

SHANGHAI - An abrupt and bold step to raise the value of the Chinese currency will not benefit China, the United States or the global economy, but may increase inflation risks in Asia, Xia Bin, a newly appointed member of the central bank's Monetary Policy Committee, said on Thursday.

"China's current exchange rate helps it recover at a rapid and sustainable level, which in turn has largely contributed to the recovery of the global economy," Xia said at Halter Financial Summit in Shanghai on Thursday.

A quick appreciation of the yuan would do little to solve the large trade deficit and high unemployment rate in the US, he said, adding that the cooling of Chinese economy from a rising rate would hamper the global recovery and consumers in the US due to climbing costs for goods.