Greater China News
Published March 23, 2010
Revalue yuan to limit inflation: OECD
(BANGALORE) The OECD has been in contact with China over revaluing its currency, the yuan, in order to contain long-term inflation but the decision to proceed is China's, deputy secretary general Richard Boucher said yesterday.
Mr Boucher said the Organisation for Economic Cooperation and Development was speaking with China from an economic perspective, and that it was up to China to address its own long-term growth.
'One of the ways to contain long-term inflation pressure is to appreciate the currency. We made that clear in our economic survey in China,' he said.
'The secretary general made it clear when he met Chinese authorities last week and it is a continuing dialogue with Chinese authorities,' he said on the sidelines of a financial literacy event by the Reserve Bank of India and the OECD.
Political pressure is growing in Washington to declare China a currency manipulator, with some US senators threatening to impose duties on Chinese products if Beijing does not allow the yuan, also known as the renminbi, to rise.
Chinese Commerce Minister Chen Deming said on Sunday that Beijing will retaliate if the US declares China a currency manipulator and imposes trade sanctions.
'We have said that as the Chinese economy grows, they need to have a trade-off been appreciation of renminbi and inflation. If they want to avoid inflation, they are going to have to appreciate the renminbi. It is is just an economic fact of life,' Mr Boucher said.
Asked about the Chinese response, Mr Boucher said: 'We have to see. My conversation with Chinese officials is they understand the economic theory, but when they are going to put it in practice it is hard to say.' He said the OECD is the right venue to have an economic discussion on the issue. 'If we are doing a serious economic conversation, OECD is the right place to go. Others have political conversations,' Mr Boucher said. -- Reuters
Published March 23, 2010
Revalue yuan to limit inflation: OECD
(BANGALORE) The OECD has been in contact with China over revaluing its currency, the yuan, in order to contain long-term inflation but the decision to proceed is China's, deputy secretary general Richard Boucher said yesterday.
Mr Boucher said the Organisation for Economic Cooperation and Development was speaking with China from an economic perspective, and that it was up to China to address its own long-term growth.
'One of the ways to contain long-term inflation pressure is to appreciate the currency. We made that clear in our economic survey in China,' he said.
'The secretary general made it clear when he met Chinese authorities last week and it is a continuing dialogue with Chinese authorities,' he said on the sidelines of a financial literacy event by the Reserve Bank of India and the OECD.
Political pressure is growing in Washington to declare China a currency manipulator, with some US senators threatening to impose duties on Chinese products if Beijing does not allow the yuan, also known as the renminbi, to rise.
Chinese Commerce Minister Chen Deming said on Sunday that Beijing will retaliate if the US declares China a currency manipulator and imposes trade sanctions.
'We have said that as the Chinese economy grows, they need to have a trade-off been appreciation of renminbi and inflation. If they want to avoid inflation, they are going to have to appreciate the renminbi. It is is just an economic fact of life,' Mr Boucher said.
Asked about the Chinese response, Mr Boucher said: 'We have to see. My conversation with Chinese officials is they understand the economic theory, but when they are going to put it in practice it is hard to say.' He said the OECD is the right venue to have an economic discussion on the issue. 'If we are doing a serious economic conversation, OECD is the right place to go. Others have political conversations,' Mr Boucher said. -- Reuters