ADB Chief Calls for More Appreciation of Chinese Yuan
SINGAPORE (AP) -- Asian Development Bank President Haruhiko Kuroda on Saturday called for an appreciation in the value of the Chinese yuan.
His words echo widespread calls by global leaders for China to allow greater flexibility in the yuan as part of efforts to rein in China's giant trade surplus.
Kuroda was speaking at a seminar on the sidelines of the meetings of the Group of Seven finance ministers and central bank governors and the International Monetary Fund. The ministers and governors are widely thought to have addressed the subject of the yuan during talks held this weekend.
"From a domestic point of view, it would be better for the (Chinese) economy to make the currency more flexible because a part of the economy is overheating," Kuroda said. "The central bank has been tightening its monetary policy in China and greater flexibility of the exchange rate would help monetary control be more effective.
Under the current situation, greater flexibility would mean somewhat of a greater appreciation."
Since Beijing allowed its currency to trade in a restricted float in July 2005, it has appreciated only about 2 percent against the US dollar. …