» 04/22/2010, 00.00
CHINA – UNITED STATES – JAPAN
IMF joins the world to ask Beijing to revalue its currency
In its World Economic Outlook, the International Monetary Fund says only a new Chinese monetary policy can guarantee a global economic recovery. It also warns Japan to invest more. The United States prepares to hit China’s aluminium export to send Beijing a strong signal.
Beijing (AsiaNews/Agencies) – China should allow market forces to set the value of the yuan, whereas Japan should enhance its economic stimulus measures, said the International Monetary Fund (IMF) in its semi-annual World Economic Outlook, which was released on Wednesday. In the meantime, the US Commerce Department said that it was close to deciding what to do in relation to China’s currency, a major thorn in US-China relations.
For the IMF, Japan’s “tentative” economic recovery is an exception in a region that is leading the global rebound, fuelled by consumer spending and investment in China and India.
For the Washington-based fund, policy makers in several countries should embrace stronger exchange rates. “Currencies of a number of emerging Asian economies remain undervalued, substantially in the case of the renminbi,” the IMF report said.
The Group of 20 emerging and developed nations, whose finance chiefs meet tomorrow in Washington, should also discuss coordinating policies to strengthen the global recovery, the IMF said. Equally, it’s “essential” for China to respond positively to the demands of the rest of the world for a new currency policy.
Currently, the yuan is pegged at 6.83 against the US dollar, and this since July 2008. For Western economists and analysts, such a fixed rate has allowed China to remain highly competitive.
It has also allowed China to accumulate huge holdings in US securities that have been steadily growing in value; any change in the exchange rate, as envisaged by US president Barack Obama, could reduce their value by as much as a third.
However, the situation has also led to a long-standing row between Beijing and Washington. Although both sides can harness good arguments, a solution still seems far away. In any event, the United States remains China’s main export market, whilst Washington needs Beijing’s support at the United Nations to stop Iran.
In the meantime, the US Commerce Department could decide this week whether to launch a groundbreaking investigation into charges that China is subsidising exports of moulded aluminium extrusions, a material that is used in the automobile and construction industries, by undervaluing its currency.
US producers filed a petition recently calling for an investigation into whether Beijing subsidises exports of aluminium extrusions by undervaluing the yuan. If the department finds in favour of the petitioners, it could impose countervailing duties to offset losses by US companies.
09/10/2007 CHINA – EUROPEAN UNION
Europe complains about low yuan
Euro-zone finance ministers criticise Beijing for keeping its currency artificially low to increase its trade advantages. The issue will be discussed October 19 when G7 finance ministers meet. The European Union is divided.
12/11/2009 CHINA – UNITED STATES
Hu and Obama in the war over the yuan
Monetary policy will be a major topic on the US president’s agenda during his official visit to China. In light of the current economic crisis, China’s currency and how it is managed cannot be ignored. Beijing is in favour of revaluation but decoupled from the greenback.
Beijing wants IMF voting quotas to reflect contributions
For China, IMF representation should reflect members’ contribution. Beijing rejects calls for yuan’s revaluation and pushes IMF to give more leeway to emerging nations and control world economy.
Economic crisis: US, China and the coming monetary storm
The massive levels reached by the foreign debt of the United States and the excessive and unjustified devaluation of China’s yuan are two high risk factors for the world economy and stability. Solutions found so far may be useful for financial institutions but not for the population. A “transnational” oligarchy is emerging that includes central banks, the Chinese Communist Party, Russia’s oligarchies and oil sheiks.
10/10/2012 CHINA - JAPAN - IMF
Islands not only reason for China IMF snub
The governor of China's central bank, who was set to deliver the closing lecture at Tokyo IMF meeting, cancelled speech and attendance. Using the diplomatic row over the Diaoyu/Senkaku Islands, Beijing is showing its irritation over the fact that it is not included in a basket of currencies used in world economic transactions.
"Adopt a Christian from Mosul": A Christmas gift to survive winter
As Iraqi troops advance in the Nineveh Plain and Mosul, a new wave of refugees could overshadow the fate of other refugees who found hospitality in Kurdistan. People need kerosene, winter clothes, aid for children, and money for rent. The campaign AsiaNews launched two years ago is more urgent than ever. Give up a superfluous gift to offer refugees an essential gift for life.
Pastor of Amadiya: Mosul’s Christian refugees, torn between emergency aid and the longing to return home
P. Samir Youssef
In a letter Fr. Samir Youssef describes the situation of refugees, exiled from their home for more than two years. They are closely following the offensive to retake Mosul, although their homes and churches "are for the most part" burned or destroyed. With the arrival of winter there is a serve lack of heating oil, clothes, food and money to pay for their children’s school bus. An appeal to continue to support the AsiaNews campaign.
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