Fukushiro Nukaga, Japanese Minister of Finance, joined the “league” of European and U.S. officials in their endeavor to convince Chinese government to take more definite actions aimed towards yuan’s free exchange rate.
Yesterday Nukaga met with Chinese official, including Vice-premier of China Zeng Peiyan, to discuss economics, monetary policy and specifically China’s currency exchange rate policy.
Japanese yen lost almost 10% against yuan this year, but that doesn’t change the fact that all developed countries, including Japan, would benefit from a more flexible yuan, with its rate more dependent on the free market laws.
Japanese minister reported some success after this meeting:
I have asked China to consider letting the yuan rise at the fastest possible pace. The Chinese side responded that it will deal with the issue with flexibility.
China also understands the benefits of a stronger currency – beating the rising inflation is good example of them. But it wouldn’t be wise to expect some immediate changes or reaction from the People’s Bank of China. Any shifts in China’s monetary policy will more likely be stepwise and without any steep curves.
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