Global Currency "War" &Nbsp; "Protect China" To Stabilize The World

In 2010, the International Monetary Fund (IMF) and the world bank ended in Washington. In the three day meeting, 187 member states from two major international financial institutions had heated discussions on improving the international monetary system, promoting world economic recovery and IMF reform.

Zhou Xiaochuan, governor of the Central Bank of China, said at the meeting that the global economic recovery situation is still not optimistic, and called on IMF and the world bank to improve the international monetary system, maintain the relative stability of the main reserve currencies, and accelerate the pace of reform of the financial system.

Global currency " Be war "

The smoke of the world financial crisis has not yet dissipated. The suspicion of currency war has been floated. The issue of exchange rate has become the focus of this annual meeting. At this annual meeting, many members agreed that if IMF and the world bank did not take measures to prevent Japan, Brazil and some emerging economies from beginning to depreciate their currencies, the possibility of currency war worldwide would be very great.

Yen appreciation affects domestic manufacturing industry In October 5th, Japan was forced to cut interest rates again. The central bank lowered its benchmark interest rate from 0.1% to zero. This is generally regarded as a precursor to the outbreak of currency wars.

At the same time, the US accelerated the depreciation of the US dollar and gradually threatened the economic and financial security of the US assets. Today, the Japanese yen and the euro have also depreciated for various reasons. Of course, more countries will join the devaluation game, and this "wheel war" is threatening the global economic recovery.

At this annual meeting, the world bank and IMF should appeal to countries not to manipulate them. Domestic currency As a new weapon to promote economic recovery, the two major financial institutions have yet to come up with concrete measures. It is expected that this remaining problem will be further discussed at the G20 summit.

Sun Lijian, vice president of the school of economics, Fudan University, said in an interview with the international finance daily that the currency war was forced to break out, and it was the result of the initiative of the manufacturing countries to seek refuge. The old manufacturing countries put new economic growth points on the expansion of foreign demand, and some of the developed economies, formerly consumption based economies, have also focused on how to expand exports to solve employment and stimulate economic recovery. The depreciation of the world's major reserve currencies led by the US dollar has led to the influx of most of the hot money into emerging economies such as Brazil. The pressure of inflation has increased, so these countries must take the initiative to defend economic security.

"Protecting China" can stabilize the whole world

At the annual meeting, Kahn, President of IMF, said that the stability of the system is very important, and the countries and regions with the importance of system stability include the United States, the United Kingdom, the euro area, China and Japan.

At present, China's economy is undergoing structural adjustment and needs a spanitional time. At this time, the stability of the RMB exchange rate must be guaranteed. Many scholars believe that if many countries and the United States exert pressure on the appreciation of the renminbi, it will inevitably damage the global economic recovery, because the slow recovery of the US economy is dragging the whole world. If the Chinese economy is leading to a resurgence of the "accident", then the world economic recovery will cast a new shadow. This is also a common view of IMF at the annual meeting.

The president of the world bank, Zoellick, stressed that the appreciation of the renminbi is not a panacea for the global imbalance.

Zhou Xiaochuan, governor of the people's Bank of China, said that China's monetary reform will be carried out in a step-by-step manner instead of the so-called "shock therapy". In the coming months, China will carefully assess fiscal policy and monetary policy and determine the future direction of the economy.

Sun Lijian believes that it is wrong to think of a significant appreciation of the renminbi as a straw in the global economic recovery. China must not commit a "low-level mistake" with the United States. When countries around the world are trying to depreciate their currencies, China's ability to "do not depreciate" is already a way to take responsibility for the global economy.