WASHINGTON, Dec 5: US Treasury Secretary Henry Paulson called on Wednesday for an immediate revaluation of the Chinese currency, saying it was critical to cool the world’s fastest growing economy.

“A more flexible currency is especially important now, when the risks of inflation are clearly rising in the Chinese economy,” he said ahead of high-level talks between Washington and Beijing on economic issues.

Paulson, speaking at a US-based Asia Society forum, said increased currency flexibility would allow China’s central bank to “use the powerful tool of monetary policy for China’s financial and price stability.”

China’s economy expanded at a blistering rate of 11.5 per cent in the third quarter of 2007, with inflation at a decade high.

Growth is not seen to be as worrisome as inflation, which affects the personal fortunes of every single family in China -- and thus has a direct impact on public support for the Communist Party’s rule. China expects increases in consumer prices to shoot to a 10-year high of 4.5 to 4.6pc this year, due mainly to soaring food prices, state media said last week.—AFP