UPDATE 1-Turkey’s Babacan: need to talk to China on currency

WASHINGTON, Oct 20 (BestGrowthStock) – Turkey would like to see
China increase the value of its currency but believes this will
be achieved only by talking to Beijing, Turkish Deputy Prime
Minister Ali Babacan said on Wednesday.

“We would have loved to see a stronger Chinese currency.
That’s for sure,” Babacan told reporters in Washington. “But
… it has to be done through talking with the Chinese.
Pressure doesn’t work.”

Babacan’s comment come amid escalating disputes over
exchange rates that could threaten global trade and economic
recovery. Both China and Turkey are members of the G20 group of
rich and developing countries, which are due to meet in South
Korea on Friday to discuss the next steps.

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Currency stand-off ahead of G20 [ID:nLDE69308R]

PDF-Race to the Bottom http://r.reuters.com/gez77p

Graphic on currency tensions http://r.reuters.com/deh58p

Breakingviews [ID:nLDE69I1YC]

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Turkey and China, which have two of the fastest growing
economies in the world, announced earlier this month that they
aim to treble bilateral trade to $50 billion a year by 2015 and
to $100 billion by 2020 under a new “strategic partnership.”

Turkish Prime Minister Tayyip Erdogan said the two sides
had agreed to use the lira and the yuan, rather than dollars,
in bilateral trade and singled out nuclear energy cooperation
as a promising driver of trade.

Currently, bilateral trade of about $17 billion is made up
mostly of Chinese exports to Turkey. Turkey wants to rebalance
trade with China through more Chinese investments in Turkey,
Chinese tourists, joint ventures in third countries and more
access for Turkish goods in China, officials say.
(Reporting by Arshad Mohammed; Writing by Andrew Quinn;
Editing by Eric Beech)

UPDATE 1-Turkey’s Babacan: need to talk to China on currency