No need for trade wars: banker
By Zhang Fengming and Leo Zhang |
June 27, 2010, Sunday
|
Print Edition
Print Edition
A central banker yesterday called for talks to solve disputes on the international markets instead of trade wars and said free trade was in the country's best interest.
The monetary authority also has "room to maneuver" and policies could be either tightened or loosened, Yi Gang, deputy governor of the People's Bank of China, told the Lujiazui Forum in Shanghai.
"We don't want trade wars and we hope to solve disputes through negotiation," Yi said. "We need to effectively deal with many sensitive issues, including the yuan exchange rate, climate change and the Doha round of talks."
In a keynote speech, Yi said China will be one of the beneficiaries of globalization and trade liberalization while the country will try its best to counter trade protectionism.
The People's Bank of China on June 19 pledged to increase the flexibility of China's exchange rate regime and further improve the exchange rate mechanism just ahead of the G20 Summit in Canada.
But the central bank ruled out a one-off appreciation, saying the new mechanism would be based on market demand and supply with reference to the value of a basket of currencies, although the dollar remained the dominant currency.
Despite the yuan's de-pegging from the dollar, some politicians in the United States maintained calls for legislation and tariffs against exports to China as they still believed the yuan was severely undervalued.
The Chinese currency rose about 0.5 percent in the past week against the US dollar with growing intraday trading fluctuations.
Xie Duo, head of the central bank's financial market section, said on Friday there was no basis for the yuan's major appreciation, given China's shrinking trade surplus.
The monetary authority also has "room to maneuver" and policies could be either tightened or loosened, Yi Gang, deputy governor of the People's Bank of China, told the Lujiazui Forum in Shanghai.
"We don't want trade wars and we hope to solve disputes through negotiation," Yi said. "We need to effectively deal with many sensitive issues, including the yuan exchange rate, climate change and the Doha round of talks."
In a keynote speech, Yi said China will be one of the beneficiaries of globalization and trade liberalization while the country will try its best to counter trade protectionism.
The People's Bank of China on June 19 pledged to increase the flexibility of China's exchange rate regime and further improve the exchange rate mechanism just ahead of the G20 Summit in Canada.
But the central bank ruled out a one-off appreciation, saying the new mechanism would be based on market demand and supply with reference to the value of a basket of currencies, although the dollar remained the dominant currency.
Despite the yuan's de-pegging from the dollar, some politicians in the United States maintained calls for legislation and tariffs against exports to China as they still believed the yuan was severely undervalued.
The Chinese currency rose about 0.5 percent in the past week against the US dollar with growing intraday trading fluctuations.
Xie Duo, head of the central bank's financial market section, said on Friday there was no basis for the yuan's major appreciation, given China's shrinking trade surplus.
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