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China makes progress in exchange rate flexibility: U.S. Treasury official

Source: Xinhua 2016-06-02 07:08:03
[Editor: huaxia]

A residents showsChina's RMB and US dollar banknotes in Qionghai, south China's Hainan Province, Jan. 7, 2016. The central parity rate of the Chinese yuan against the U.S. dollar weakened to 6.5646 per dollar on Jan. 7, the lowest since March 2011. (Xinhua/Meng Zhongde)

WASHINGTON, June 1 (Xinhua) -- China has been making progress in key areas, including exchange rate flexibility, and it's essential that China continue to move in the direction of two-sided flexibility of its currency, a senior U.S. Treasury official said on Wednesday.

Speaking to reporters ahead of the U.S. treasury secretary's trip to Beijing for the eighth China-U.S. Strategic and Economic Dialogue meetings, the official said that the hallmark for a market-oriented exchange rate regime pursued by China would be two-sided flexibility which allows the exchange rate of Chinese currency to appreciate and depreciate in response to market forces.

The official said that it's essential that China continue to move in the direction of two-sided flexibility of its currency.

When asked to comment on the recent depreciation of the Chinese currency RMB, the official said that it's very important to evaluate exchange rate in real effective terms, namely against a basket of currencies of trading partners, instead of evaluating the exchange rate bilaterally.

The official also said that it's important for China to continue to clearly communicate its exchange rate policy intentions.

The value of Chinese RMB is basically within the fundamental equilibrium level, according to a recent research report released by the Washington-based think tank Peterson Institute for International Economics.

The report expected China's current account surplus will continue to fall, as a result of the upward trend in the real effective exchange rate of the RMB.

It showed that the RMB real effective exchange rate has increased about 18 percent from February 2012 to February 2016.

Related:

China, U.S. officials to meet for annual dialogue

BEIJING, May 30 (Xinhua) -- Officials from China and the United States will hold annual meetings next week in Beijing, according to a Foreign Ministry spokesperson Monday.

The eighth China-U.S. Strategic and Economic Dialogue (S&ED) and the seventh China-U.S. High-Level Consultation on People-to-People Exchange (CPE) will be held on June 6 and 7, spokesperson Lu Kang announced. Full story

No basis for persistent RMB depreciation: central bank governor

WASHINGTON, April 16 (Xinhua) -- The Chinese currency renminbi (RMB) has remained "basically stable" against a basket of currencies and there is no basis for persistent RMB depreciation, Chinese central bank governor said on Saturday.

"Recent movements in the RMB exchange rate reflected well the managed floating exchange rate regime based on market supply and demand and with reference to a currency basket," Zhou Xiaochuan, governor of the People's Bank of China, said in a statement for the meeting of the International Monetary and Financial Committee (IMFC), the IMF policy setting committee, on the sidelines of the spring meetings of the IMF and the World Bank. Full story

[Editor: huaxia]
 
China makes progress in exchange rate flexibility: U.S. Treasury official
                 Source: Xinhua | 2016-06-02 07:08:03 | Editor: huaxia

A residents showsChina's RMB and US dollar banknotes in Qionghai, south China's Hainan Province, Jan. 7, 2016. The central parity rate of the Chinese yuan against the U.S. dollar weakened to 6.5646 per dollar on Jan. 7, the lowest since March 2011. (Xinhua/Meng Zhongde)

WASHINGTON, June 1 (Xinhua) -- China has been making progress in key areas, including exchange rate flexibility, and it's essential that China continue to move in the direction of two-sided flexibility of its currency, a senior U.S. Treasury official said on Wednesday.

Speaking to reporters ahead of the U.S. treasury secretary's trip to Beijing for the eighth China-U.S. Strategic and Economic Dialogue meetings, the official said that the hallmark for a market-oriented exchange rate regime pursued by China would be two-sided flexibility which allows the exchange rate of Chinese currency to appreciate and depreciate in response to market forces.

The official said that it's essential that China continue to move in the direction of two-sided flexibility of its currency.

When asked to comment on the recent depreciation of the Chinese currency RMB, the official said that it's very important to evaluate exchange rate in real effective terms, namely against a basket of currencies of trading partners, instead of evaluating the exchange rate bilaterally.

The official also said that it's important for China to continue to clearly communicate its exchange rate policy intentions.

The value of Chinese RMB is basically within the fundamental equilibrium level, according to a recent research report released by the Washington-based think tank Peterson Institute for International Economics.

The report expected China's current account surplus will continue to fall, as a result of the upward trend in the real effective exchange rate of the RMB.

It showed that the RMB real effective exchange rate has increased about 18 percent from February 2012 to February 2016.

Related:

China, U.S. officials to meet for annual dialogue

BEIJING, May 30 (Xinhua) -- Officials from China and the United States will hold annual meetings next week in Beijing, according to a Foreign Ministry spokesperson Monday.

The eighth China-U.S. Strategic and Economic Dialogue (S&ED) and the seventh China-U.S. High-Level Consultation on People-to-People Exchange (CPE) will be held on June 6 and 7, spokesperson Lu Kang announced. Full story

No basis for persistent RMB depreciation: central bank governor

WASHINGTON, April 16 (Xinhua) -- The Chinese currency renminbi (RMB) has remained "basically stable" against a basket of currencies and there is no basis for persistent RMB depreciation, Chinese central bank governor said on Saturday.

"Recent movements in the RMB exchange rate reflected well the managed floating exchange rate regime based on market supply and demand and with reference to a currency basket," Zhou Xiaochuan, governor of the People's Bank of China, said in a statement for the meeting of the International Monetary and Financial Committee (IMFC), the IMF policy setting committee, on the sidelines of the spring meetings of the IMF and the World Bank. Full story

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