Related News
Yuan appreciation 'will harm US consumers'
By Zhang Fengming |
April 8, 2010, Thursday
|
Online Edition
Online Edition
A ONE-OFF and sharp appreciation of the yuan will harm the global economy including American consumers, central bank advisor Xia Bin said today in Shanghai.
"The appreciation of the yuan isn't in the core interest of the United States and won't solve its economic problems," Xia, a member of the monetary policy committee of the People's Bank of China, told the 2010 Halter Financial Summit today in the city.
He said China will stick to a managed flexible foreign exchange regime in the long haul but the yuan should be more flexibly traded.
China should peg to a basket of trade-weighted currencies in a few years, said Xia, who is also head of financial research at the State Council's Development Research Center.
He also said that in the short term, the currency policy should shift to the pre-crisis stance as soon as possible.
China depegged from the US dollar on July 21, 2005 and the local currency has appreciated about 20 percent until the middle of 2008 when the yuan's appreciation was halted -- with yuan being flat against the greenback at 6.83 -- as China tackled the world financial crisis.
China should open the yuan bond market to foreign investors, and Chinese companies should issue more yuan bonds offshore, Xia said.
He also called for expanding the cross-border trade yuan settlement trial nationwide to thrust the globalization of the yuan.
From July, China started allowing companies in Shanghai and four cities in southern Guangdong Province to use yuan in cross-border trade with Hong Kong, Macau and members of the Association of Southeast Asian Nations.
Market speculation is mounting that the yuan will resume appreciation soon, with the third
quarter as a possible timing, on recent signs of easing tensions on the currency issue between the two countries.
.
"The appreciation of the yuan isn't in the core interest of the United States and won't solve its economic problems," Xia, a member of the monetary policy committee of the People's Bank of China, told the 2010 Halter Financial Summit today in the city.
He said China will stick to a managed flexible foreign exchange regime in the long haul but the yuan should be more flexibly traded.
China should peg to a basket of trade-weighted currencies in a few years, said Xia, who is also head of financial research at the State Council's Development Research Center.
He also said that in the short term, the currency policy should shift to the pre-crisis stance as soon as possible.
China depegged from the US dollar on July 21, 2005 and the local currency has appreciated about 20 percent until the middle of 2008 when the yuan's appreciation was halted -- with yuan being flat against the greenback at 6.83 -- as China tackled the world financial crisis.
China should open the yuan bond market to foreign investors, and Chinese companies should issue more yuan bonds offshore, Xia said.
He also called for expanding the cross-border trade yuan settlement trial nationwide to thrust the globalization of the yuan.
From July, China started allowing companies in Shanghai and four cities in southern Guangdong Province to use yuan in cross-border trade with Hong Kong, Macau and members of the Association of Southeast Asian Nations.
Market speculation is mounting that the yuan will resume appreciation soon, with the third
quarter as a possible timing, on recent signs of easing tensions on the currency issue between the two countries.
.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
