UPDATE 1-Singapore says it’s time China revalued yuan – CNN

* Move in China’s best interest – Singapore fin minister

* Says currency rise would help alleviate price pressures

* Greek PM says may sue U.S. banks over debt woes
(Adds Greek prime minister’s comments)

WASHINGTON, May 15 (BestGrowthStock) – China should allow its
currency to rise in order to help tamp down inflation,
Singapore’s finance minister said in a television interview.

Tharman Shanmugaratnam said on CNN’s “Fareed Zakaria GPS”
that at the height of the financial panic in 2008, it made
sense for China to halt the yuan’s appreciation. Now, it was in
the country’s own best interest to let the currency rise, he
said.

“The exchange rate was an anchor of stability at a time
when there was instability all around the place,” he said. ”
Should they now go back to where they were before the crisis,
which is the path of gradual appreciation with a more flexible
exchange rate allowed? I think that’s sensible.”

The interview is scheduled to air on Sunday. CNN provided
an advance transcript.

Singapore joins the United States, Europe, the
International Monetary Fund and others in prodding China to
allow its currency to rise more rapidly.

China has heard this argument for years, particularly from
Western countries that say its undervalued currency gives it an
unfair trade advantage.

In recent months, however, the tone has shifted. Instead of
pressuring China to change its policy in order to help the rest
of the world, policymakers have pointed out that it would be in
China’s best interest.

Shanmugaratnam said inflation was going to become “an
increasing concern in China,” so allowing the currency to rise
more swiftly would help alleviate price pressures.

He also said revaluing the currency would help lift living
standards.

“As you grow, as your productivity goes up, if you want
people to be able to enjoy your higher standard of living by
consuming more, it goes with a stronger exchange rate,” he
said.

GREECE MAY TARGET U.S. BANKS

Zakaria also interviewed Greek Prime Minister George
Papandreou, who said his country would not rule out suing U.S.
banks if its investigations found they contributed to Greece’s
debt woes.

Greece, which received a European Union and IMF bailout to
stave off a debt default, is looking into what Papandreou
called “negative practices” by banks.

When asked whether Greece would pursue legal recourse, he
said, “I wouldn’t rule out that this may be a recourse.”

He said Greece needs to let “due process proceed” before
making any judgment on what steps to take.
Stock Market News

(Reporting by Emily Kaiser; Editing by Xavier Briand)

UPDATE 1-Singapore says it’s time China revalued yuan – CNN