The G20 Summit Will Hold &Nbsp This Weekend, And The RMB Exchange Rate Remains The Focus Of Attention.

"Prescribing for the continued recovery of the world economy" has been widely regarded as the central issue of this weekend's G20 summit in Toronto. Although several previous G20 summits have ended in disagreements among delegates, several countries, including the United States, have always been able to reach a consensus on a matter of high hopes for China to accelerate its internationalization process.

"The Chinese government has said that RMB appreciation It will be unexpected. The fact is, they did give people a surprise. Franklin Alan, Professor of finance at Walton business school, University of Pennsylvania, USA, said (Franklin Allen).

After the central bank's decision to increase the flexibility of the RMB exchange rate, the mainstream media in the United States immediately gave a warm "hug", calling it a lubricant on the Sino-US trade dispute. Some media have even exaggerated that in June 21st, the Sino US economy will be on a normal track since China announced this decision before.

At the Congressional Senate Finance Committee hearing held in June 16th, lawmakers in addition to strongly appealed to Obama administration officials to relax their pressure on China, they also said they would continue to push legislation to pressure China to expand its exchange rate reform.

Baucus, chairman of the committee, said at the hearing that China's recent announcement of increasing the flexibility of the RMB exchange rate opened the door for the appreciation of the renminbi, but "the Ministry of commerce should seriously consider China's monetary policy in accordance with the laws of the United States and see whether it has constituted an unfair subsidy" Max Baucus.

Some members called for the US Commerce Department to consider the low value of the exchange rate as a subsidy to the products, so that it could levy a countervailing duty on the products. The bill has now received 120 support from about 30% members.

Luo Jiahui, the US Secretary of Commerce, who testified at the hearing, said finance minister Geithner would pay close attention to the speed and extent of the appreciation of the renminbi, and would continue to discuss the issue of exchange rates with Chinese officials. Luo Jiahui said Obama will exchange views with Chinese leaders on exchange rate issues and trade issues during the weekend's G20 summit.

In a letter sent to G20 leaders in June 16th, Obama said: "the signal released by an elastic exchange rate is necessary for supporting a stronger and more balanced recovery in the global economy." Although no direct reference is made to China, anyone knows that this is clearly aimed at China.

Reuters reported that Obama mentioned the exchange rate issue, suggesting that there may be conflicts between China and the US at the G20 summit in Toronto.

Alfredo Boutino, director of South American economic research at Moodie economic website, said there are signs that the issue of RMB exchange rate may occur during the conference. "Now all sectors of the United States have been actively discussing this topic. During the G20 summit, it is very likely that the United States will put forward this question directly and let everyone discuss it, no matter 37 or twenty-one." He said.

Refusing to speculate that President Obama and President Hu Jintao will have some specific discussions on the currency issue, Burton, deputy White House press secretary, made clear that the major industrial nations are waiting to see how China will implement its monetary adjustment plan in the coming months.

Burton said: "for a wide range of discussions, they (President Obama and President Hu Jintao) will discuss employment growth, the need for new and established financial regulations, and how we can maintain a sustained economic recovery, and monetary policy is certainly part of this discussion."