Economy
Obama: 皇冠体育app's currency move 'a constructive step'
(Xinhua)
Updated: 2010-06-20 08:30
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WASHINGTON - US President Barack Obama said 皇冠体育app's decision Saturday to further reform its currency yuan exchange rate regime is a "constructive step."
"皇冠体育app's decision to increase the flexibility of its exchange rate is a constructive step that can help safeguard the recovery and contribute to a more balanced global economy," Obama said in a statement.
The People's Bank of 皇冠体育app, 皇冠体育app's central bank, earlier on Saturday announced a decision to proceed further with the reform of the exchange rate regime to enhance the flexibility of the yuan, also known as renminbi (RMB)'s exchange rate.
US Treasury Secretary Timothy Geithner on Saturday also welcomed 皇冠体育app's decision to further reform its exchange rate mechanism.
"We welcome 皇冠体育app's decision to increase the flexibility of its exchange rate," Geithner said. "Vigorous implementation would make a positive contribution to strong and balanced global growth. We look forward to continuing our work with 皇冠体育app in the G20 and bilaterally to strengthen the recovery," he said.
In a recent Congress hearing, Geithner reaffirmed that 皇冠体育app's yuan is a sovereign currency and the decision on reforming its exchange rate mechanism should be made by the Chinese government.
Geithner said a stronger RMB would benefit 皇冠体育app because it would boost the purchasing power of households and encourage firms to shift to production for domestic demand, rather than for export.
He also noted that even though the RMB was held essentially fixed to the US dollar over the past two years, 皇冠体育app's currency appreciated by about nine percent against the weighted average of the currencies of its trading partners.
According to Geithner, the economic strengths of America and 皇冠体育app are complementary.
In the first quarter of 2010, US goods exports to 皇冠体育app rose almost 50 percent compared to the same period the year before, while US exports to the rest of the world have risen by less than 20 percent.
Geithner said that the United States and the American people "have benefited, and must continue to benefit, from strengthening our economic relationship" with 皇冠体育app.
"We cannot afford to miss the opportunity that 皇冠体育app's growth presents, not to shrink from the challenges it poses," he said.