China is improving its exchange rate

Inviato il 7 December 2010 da Rod

We know that all major states and governments of the world, primarily in the United States, began a kind of struggle against China to push the country to a more natural swing in its currency. According to many, in fact, the Eastern country would be deliberately holding down the value of its currency to support its exports and, therefore, seek to grow more than other countries.
Yesterday, Assistant Governor of Bank of China, Li Dongrong, has rejected criticism about the slowness with which China is setting up the choices and strategies to get to have a more flexible exchange rate regime, saying that the management of the currency of the country has contributed to global economic stability.
Speaking to an intervention ‘China meets Europe’, held in Hamburg, has promised that China will continue to improve the exchange rate regime, on the basis of market supply and demand.
These comments came after a senior official of the European Central Bank, also on Thursday, who called on China to make even the potential for adjustments in exchange rates. So it seems that China is moving towards a more flexible regime of exchange rates. According to experts, it appears that a greater flexibility of the yuan, that of the Chinese currency, would be another favorable element to have, ultimately, a more balanced growth of all currencies and a better and more sustained global economic recovery.
Constancio was speaking at the same event.
Addressing these problems, Li said the Dongrong PBOC will continue to “promote economic restructuring” to move the economy on a more stable, and “strengthen supervision macro potential.”
“The bank of China has attached great importance to the coherence and stability of its monetary policy,” he said.