CRI Home - Photo- Forums - Talk China - Surf China - About China -  
  Webcast | CRI Today | China | World | Biz | SciTech | Sports | Life | Showbiz | Easy FM | Learn Chinese / English | Weather | Events
Time for China to Ease Currency Peg
2005-4-16 18:07:06
US Treasury Secretary John Snow urges China to move toward a flexible exchange rate.

Related Event: RMB to Go Up?

The time has come for China to move toward a flexible exchange rate, US Treasury Secretary John Snow said here as he prepared to meet counterparts from the Group of Seven industrialized countries.

"The Chinese have clearly stated that they will move to a market-based, flexible exchange rate," Snow told Japanese Finance Minister Sadakazu Tanigaki, according to a statement issued by his office.

Snow noted that Chinese authorities "have taken steps over the last two years to prepare for a flexible exchange rate and that China is ready now to adopt a more flexible exchange rate and now its time to move."

While not a member of the Group of Seven, China was nonetheless invited to attend G7 finance meetings in September and February, mainly to hear complaints from the group about its reluctance to allow the dollar-pegged yuan to float.

US and European officials maintain that the yuan is undervalued, thereby giving Chinese exports an unfair advantage while making imported goods more expensive and less attractive.

Chinese officials will not be attending this week end's meeting of G7 finance ministers and central bankers, which was to open with a dinner Friday ahead of formal discussions on Saturday.

Chinese chief trade negotiator, Long Yongtu, earlier this month said China was unlikely to undertake broad-ranging reforms of its foreign exchange regime in the near future.

Beijing will only change its foreign exchange regime once its banking system, secondary financial sector and regulatory muscle are deemed strong enough to cope, Long told a seminar in Beijing.

"It's very unlikely China is going to change its foreign exchange regime in the foreseeable future," said Long, who headed the team negotiating the conditions for China's entry into the World Trade Organization.

(Source: AFP)

        Talk China        Print        Email        Recommend
Related Stories:
v China to Export 100 Bln Dollars of Textiles in 2005 04-16
v Bush: China Growing Like Mad 04-15

  Copyright of All rights reserved.

Reproduction of text for non-commercial purposes is permitted provided that both the source and author are acknowledged and a notifying email is sent to us.

postalChina Post is progressing with its scheme to merge its two sub-businesses.
textilePeter Mandelson said he would hold talks with Bo Xilai this week.
YahooChinese e-commerce operator is in the late stages of talks to sell a 35 percent stake to Yahoo Inc.
BOC IPO Could Take Place in 2005
China, Hong Kong, Japan, and Aussie Market Roundup 
CNOOC's Market Value Up By $7b
Producer Price Index Rises
Lenovo Profit Up 6% After IBM PC Buy
Power Supply Sees Robust Growth
HK Urges Manufacturers to Go "Green"
Major HK Banks's Interest Rate Hike
China Mobile First-Half Profit Rises