Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RealMuLan who wrote (1930)	12/12/2003 12:09:53 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Not the time for China currency change -World Bank Reuters, 12.11.03, 8:11 PM ET By Anna Willard WASHINGTON, Dec 11 (Reuters) - A senior World Bank official said on Thursday now is not the right time for China to make big changes to its currency regime and said it is not totally fair for the United States to blame China for loss of exports. The World Bank's newly named chief economist, Francois Bourguignon, has just returned from a trip to China and predicts that the country could become the world's largest economy by 2030. "I have the feeling that this is not really the moment for a big change in the exchange rate regime," he told Reuters in an interview. "Because the financial sector in China is underdeveloped, it would be difficult to move to a flexible foreign exchange rate regime right now." He expects China will move to a flexible currency arrangement but not until around 2006, when according to World Trade Organization commitments, the country is to let foreign banks offer a full range of financial services. China has come under heavy pressure from the United States to free up its pegged exchange rate regime. U.S. manufacturers say China is keeping its currency pegged to the dollar at an artificially cheap level meaning they are unable to compete with Chinese exports on world markets. But Bourguignon said if a trade spat between China and the United States is still going on between the two countries in 2006, as punishment to U.S. companies, China could keep its financial sector closed, which might delay a move to a floating currency. He said the U.S. argument that China has taken American jobs because of its exchange rate, was not quite accurate. forbes.com