Zhou Xiaochuan Refused To Speed Up RMB Appreciation In The US And Europe

Beijing time on the morning of October 9th, governor of the Central Bank of China Zhou Xiao Sichuan The International Monetary Fund (IMF) was held in Washington on Friday. IMF And the annual meeting of the World Bank refuse The United States and Europe are speeding up. RMB appreciation He demanded that China's currency reform be carried out in a gradual manner.

"China's exchange rate policy is gradually moving to a balance point based on the supply and demand of the market," Zhou Xiaochuan said at a seminar held by Broadcasting British Corporation today at the IMF annual meeting. "We are carrying out monetary reform in a step-by-step way instead of adopting the so-called shock therapy."

Since June, China's RMB dollar exchange rate has increased by 2%. Foreign governments believe that China's exchange rate is too slow, accusing China of artificially lowering the currency exchange rate to gain export advantage. At the annual meeting of IMF, finance ministers accused China, Brazil and Japan of pursuing a weaker currency that would damage the world economy.

Zhou Xiaochuan reiterated that China will push its currency reform according to its own pace. He added that the speed of RMB appreciation depends on the balance of payments.

"For large economies, gradualism is beneficial," Zhou said. "Otherwise, it will damage the economy."

The US House of Representatives passed a measure last month to give American companies the power to supervise import tariffs to prevent Chinese manufacturers from using exchange rate as a means of trade competition. The European Central Bank President Terry said this week that since the beginning of the appreciation of the renminbi in June this year, it has not been in the way we want to see.

Chinese Premier Wen Jiabao warned EU leaders in Brussels this week not to join the US force to put pressure on China's exchange rate reform. Wen Jiabao said that an excessive currency appreciation would result in a large number of bankruptcies of Chinese export enterprises, resulting in social upheaval in China.

When it comes to China's monetary and fiscal policies, Zhou Xiaochuan said that during the global financial crisis, policymakers will "scrutiny" every economic stimulus plan to avoid potential threats to inflation and asset bubbles.

Data showed that China's manufacturing expansion in September was the fastest in four years, while consumer prices rose 3.5% in September, the biggest increase in 22 months.