Close  

US urges China to make ‘more movement’ over yuan

/ 09:50 AM April 15, 2012

CARTAGENA, Colombia –  The White House Saturday reacted cautiously to an announcement from China that it was loosening up its currency controls, saying it would like to see “more movement.”

“They’ve made some progress, we’d like to see more movement. We noted this announcement. We’re reviewing it closely,” a top administration advisor, Ben Rhodes, told reporters on the sidelines of a regional summit in Colombia.

ADVERTISEMENT

“It comes in the continuum of us wanting to see the Chinese take more of these steps to see their currency appreciate to come in line with the market value,” added Rhodes, the deputy national security advisor.

The yuan is currently allowed to trade 0.5 percent on either side of a midpoint price set by the central bank every trading day.

FEATURED STORIES

The new rules announced Saturday by China’s central bank – seen as a shift towards adopting more market-oriented reforms – will come into effect on Monday and allow the currency to fluctuate by up to 1.0 percent either side.

The United States and Beijing’s other trading partners have long criticized China’s yuan exchange rate, saying it is kept artificially low, fuelling a flow of cheap exports that have helped trigger huge trade deficits.

Chinese Prime Minister Wen Jiabao however acknowledged last month that the yuan had increased in value by some 30 percent since 2005 in comparison to the dollar.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: China, Cuurency, Foreign Exchange, United States
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.