US Treasury Undersecretary John Taylor said that China remains willing to end its decade-long currency peg and is committed to establishing a flexible exchange rate for the yuan. Speaking to reporters after the meeting of G7 finance ministers and central bankers in London, Taylor said he had seen "steps that are consistent" with China making moves to abandon the peg. Taylor, who attended the meeting in place of US Treasury boss John Snow, who was ill with a cold, said China would also benefit from a flexible exchange rate regime which would enable it to fight inflation after its economy grew 9.5% last year. "Sustained, non-inflationary growth in China is important for maintaining strong global growth, and a more flexible and market-based renminbi exchange rate would help the Chinese achieve this goal,'' he said. Aside from the G7 member nations, Chinese Finance Minister Jin Renqing and central bank Governor Zhou Xiaochuan attended the two-day London gathering.
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