28 November, 2015 AsiaNews.it Twitter AsiaNews.it Facebook            

Help AsiaNews | About us | P.I.M.E. | | RssNewsletter | Mobile

mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato

e-mail this to a friend printable version

» 04/22/2010
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.

e-mail this to a friend printable version

See also
Europe complains about low yuan
Hu and Obama in the war over the yuan
10/05/2009 CHINA
Beijing wants IMF voting quotas to reflect contributions
12/09/2008 ASIA
Economic crisis: US, China and the coming monetary storm
by Maurizio d'Orlando
10/10/2012 CHINA - JAPAN - IMF
Islands not only reason for China IMF snub

Editor's choices
Paris Massacre highlights the failure of Muslim integration in Europe
by Catherine FieldThe attack in the heart of France highlights the crisis of Europe’s model of coexistence. Social unrest, poverty and marginalisation feed youth extremism and radicalisation. A New Zealander journalist, expert on expertise in religion and interfaith dialogue, talks about it after undertaking a journey through the French Muslim world.
For Nîmes imam, Islam should not be held hostage by extremists
by Hochine DrouicheFrench imams condemn the Paris terrorist attacks and disassociate themselves from violence committed in "the name of our religion." At the same time, they ask Muslim communities to dare leading a life of dialogue and friendship with Europeans, without fear or arrogance. For centuries, Muslims have ruled out reason from their religious life. The vice president of French imams bears witness.
AsiaNews marks 12 years: Persecution and hope
by Bernardo CervelleraDespite a worldwide increase of ignorance, indifference and superficiality, many signs of love and hope resist even in the most gloomy situations: the Iraqi mother who gives birth to her child in a refugee camp and smiles even though she has nothing; the Indonesian Muslim mother who blesses her son who became a Christian and a priest; the Chinese Christian families that welcome children thrown away because of the one-child law.


Copyright © 2003 AsiaNews C.F. 00889190153 All rights reserved. Content on this site is made available for personal, non-commercial use only. You may not reproduce, republish, sell or otherwise distribute the content or any modified or altered versions of it without the express written permission of the editor. Photos on AsiaNews.it are largely taken from the internet and thus considered to be in the public domain. Anyone contrary to their publication need only contact the editorial office which will immediately proceed to remove the photos.