Learn Chinese - PBOC: 'Significant progress' made in currency reforms

CHINA / National

PBOC: 'Significant progress' made in currency reforms
(AP)
Updated: 2006-09-19 16:05

SINGAPORE - China's foreign exchange reforms have made "significant
progress," though the impact will be seen over time, Beijing's central
bank governor told fellow financial leaders on Tuesday.

The remarks by the governor of the People's Bank of China, Zhou
Xiaochuan, came amid calls from other delegates to the annual meeting of
the IMF and World Bank for more action to ensure flexibility in currency
rates.

"Significant progress has been made to improve the exchange regime to
allow greater flexibility," Zhou said of China's controls on its
currency, the yuan, which Beijing says are needed to protect its
developing economy. "The impact of these policies will be felt over time."

A US official meanwhile urged the International Monetary Fund, which
seeks to promote financial stability and provides loans to countries in
crisis, to step up its oversight of currency issues.

"The encouragement of appropriate exchange rate policies to facilitate
international trade and global growth remain the IMF's most fundamental
responsibilities," said the US Treasury assistant secretary for
international affairs, Clay Lowery.

"This entails rigorous assessments of members' exchange-rate regimes,"
Lowery said, warning that ceding that role would result in countries
taking action independently, "frankly to the detriment of us all," he
said.

Lowry's comments came as US Treasury Secretary Henry Paulson arrived in
China for a visit expected to include talks on Washington's appeals for a
stronger Chinese currency.

IMF President Rodrigo de Rato acknowledged the calls for more
surveillance over currency issues.

"The responsibility of the IMF is very clear. We are, we have a mandate
to macroeconomic and financial stability," de Rato said, adding that
"exchange rates form part of that mandate."

But such discussions are not done in public, he said.

"At the same time, as it is known, the discussion of exchange rate
equilibrium positions is held in a discreet way because it is very
sensitive information sometimes," he said.

Most Commented/Read Stories in 48 Hours

Today's Top News 

� RMB gains before US Treasury Secretary's visit

� More peacekeepers head to Lebanon

� 75th anniversary of invasion marked

� Man rejects first penis transplant

� Female space tourist blasts off

Top China News 

� PBOC: 'Significant progress' made in currency reforms

� China, US agree to further strengthen bilateral ties

� IMF agrees to increase China's voting power

� China blasts US accusation on religious freedom

� China to better help LDSs out of poverty

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese