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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1012)	10/13/2003 1:37:37 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

IMF says "increased flexibility" in exchange rate in China's interest SINGAPORE : The International Monetary Fund (IMF) said a flexible exchange rate was in China's economic interest, adding more pressure on Beijing to let its currency float amid intense pressure from the United States. "For China, the IMF has advocated increased flexibility in the exchange rate as being in China's interest," the IMF's deputy managing director, Shigemitsu Sugisaki, said Sunday at the World Economic Forum's East Asia summit here. Advertisement "Such flexibility would facilitate China's ability to control the monetary growth, namely give more independence to monetary policy... cushion the impact of external shocks from the major structural changes underway in the economy." But the IMF deputy chief said the Washington-based body was not advocating an immediate move to a freely floating exchange rate, rather a "phased approach". China has come under increasing pressure, especially from the United States, to remove its yuan-dollar peg. American exporters argue the peg makes their goods expensive for Chinese consumers and Chinese exports cheap in the United States. The G-7 group of most industrialised countries lent its weight to the campaign last month when it urged flexibility in fixed exchange rates. Chinese premier Wen Jiabao has said the government will not allow its currency, pegged at around 8.3 to the dollar, to float until further financial reforms are in place. - AFP channelnewsasia.com