"With weakened demand in advanced economies, China and other emerging markets must necessarily play a bigger role in bolstering global demand or see overall growth slow," a senior Treasury Official said ahead of the G-20 finance ministers' meeting on the sidelines of the annual meeting of the International Monetary Fund and the World Bank.
"I think we believe that emerging markets have a very important role to play, particularly at a moment where advanced economies have weakening demand.
"There's a lot of domestic consumption that is coming on line in countries like India, like China," the Treasury official, who declined to be named, said in response to a question.
"Countries like China can do more to bring it on line by allowing more movement in the exchange rate. And of course, that's something that India is already very much aligned with and supporting," the official said.
"The emerging markets, especially those with large current account surpluses, have substantial capacity to strengthen domestic demand and pivot more rapidly away from an exports-reliant growth strategy.
"Greater exchange rate flexibility is a central instrument for accomplishing this shift to domestic demand-led
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