NEW YORK : Federal Reserve Chairman Alan Greenspan said Friday he expects a revaluation "at some point" of the Chinese yuan, but noted that the move could impact inflation in the United States.

"I will accept the premise that the (yuan) will be at some point revalued," Greenspan said in response to a question after a New York speech.

But the powerful US central bank chief warned that this may have unintended consequences for those in the United States who blame China for global trade imbalances.

A revaluation would likely mean higher prices for imports, stoking inflation. Manufacturers may simply shift out of China to other low-cost nations, he added.

"The effect will be a rise in domestic prices in the United States and as a consequences of that there will be other impacts," Greenspan said.

Following a revaluation, Greenspan said, "the price of imports in the United States from China will rise ... it does not follow that it will lower our overall trade balance."

Greenspan pointed out that in the global market companies can shift elsewhere if the Chinese currency gets too high.

"China competes significantly with Thailand, etc," he said. "Essentially what we will find is that we will import from a different area" if the yuan rises significantly.

- AFP /ls