China appears to be moving toward a change in its exchange rate policy, with a senior government economist saying on Tuesday that China could widen the renminbi’s daily trading band and allow the currency to gradually appreciate, the Financial Times reported. Ba Shusong, the deputy director-general of the Financial Research Institute at the Development Research Center said the renminbi’s effective US dollar peg was merely a temporary emergency measure. Ba made his comments after US Treasury Secretary Timothy Geithner announced a delay in the release of a report on the currency policies of major trading partners. China may also consider allowing the renminbi to trade against a wider range of currencies, including the Russian ruble, South Korean won and Malaysian ringgit, in a step toward making it an international currency.
Categories