IMF plays down China currency-reform urgency

WASHINGTON, Jan 28 (Reuters) - The chief economist for the International Monetary Fund said on Wednesday this was not the right time to push China on its foreign-exchange policy, in an effective rebuke of the Obama administration's bid to do so.

"It is probably not the right time to focus on the Chinese exchange rate given that it is not a central element of the world crisis," Olivier Blanchard said at a press conference.

"There are many other things we should be thinking about," Blanchard said. "It is an item on the list but it is not at the top of the list."

Treasury Secretary Timothy Geithner, in written responses to questions submitted at a Senate confirmation hearing, said last week that President Barack Obama considers China to be "manipulating" its currency.

He said the United States would "aggressively" push Beijing to move faster on currency policy reform to let market forces play a larger role in setting its value.

(Reporting by Glenn Somerville, Editing by Chizu Nomiyama)