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| Central bank Renminbi revaluation |
| 发布日期：[2007-2-8] 共阅[729]次 |
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China cenbank adviser Yu says yuan rise inevitable
Monday 24 October 2005, 6:21am EST
(Adds comments by MOF"s Watanabe, market reaction)
By Ritsuko Ando
TOKYO, Oct 24 (Reuters) - An influential economist and adviser to China"s central bank said on Monday that an appreciation in the yuan was inevitable and that he expected further changes in the country"s currency policy.
Japan"s top financial diplomat, Hiroshi Watanabe, told the same symposium that China should now be ready for such change after having spent several months adjusting to its new regime.
"Personally, I think there will be several further changes," Yu Yongding, head of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, told a Tokyo symposium on China"s currency policy.
In July, China scrapped its dollar peg and adopted a managed float that in theory allows the yuan to rise or fall by 0.3 percent a day against the dollar.
But Washington says the yuan remains seriously undervalued given China"s ballooning balance-of-payments surplus, and it wants the currency, also known as the renminbi, to rise faster.
Yu said further measures could include expanding the trading band for the yuan, setting a new central rate, adding that such measures would make Chinese policy "more flexible as well as more transparent."
But he said any moves would likely be gradual and the value of the Chinese yuan alone should not be blamed for the huge U.S. current account deficit.
"Renminbi appreciation is not sufficient to correct global imbalances," he said, saying academics should not join the "scapegoating" and "witch hunting."
His comments, mostly in line with those he made in an interview with Reuters earlier this month, follow U.S. Treasury Secretary John Snow"s recent visit to China.
TIME HAS COME
Watanabe, Japan"s vice finance minister for international affairs, said the international community was seeking more yuan reforms not just because of trade, but also because a more flexible currency would help China better manage its economy.
He and other government officials had previously said China needed a "trial period" before introducing further reforms to its currency regime, but on Monday he said the time had come for more change.
"Now that the trial period is over, it should reflect market forces more," he said.
The yen pulled up from last week"s two-year low against the dollar and rose versus the euro on Monday after Yu"s comments. It last traded around 115.64/67 to the dollar.
But the yuan eased versus the dollar and closed at 8.0916 per dollar compared with Friday"s 8.0885.
Investors betting on a further rise in the yuan tend to buy the Japanese yen, which is seen as a proxy for the yuan.
Yu is the only academic member of the People"s Bank of China"s monetary policy committee. The panel gives advice on policy but does not set it.
China"s economy expanded at a faster-than-expected 9.4 percent rate in the third quarter from a year earlier amid strong industrial output and investment, data showed last week.
That marked the ninth successive quarter of annual growth of 9 percent or more for the world"s seventh-biggest economy. It followed annual rises of 9.5 percent for the second quarter and 9.4 percent for the first.
Yu said China"s economy was showing signs of cooling down or stabilising, but strong growth would likely continue for the next decade on a "more sustainable trajectory."
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