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          Economy

          China's move on yuan reform widely welcomed

          (Xinhua)
          Updated: 2010-06-20 13:27
          Large Medium Small

          BEIJING - The international community has?reacted positively to the pronounced move by the People's Bank of China to proceed further with its reform of the exchange rate regime so as to enhance the flexibility of the renminbi's or yuan's exchange rate.

          US President Barack Obama described the move as a "constructive step" while IMF Director-General Dominique Strauss-Kahn rated the move as "a very welcomed development."

          Related readings:
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          China's move on yuan reform widely welcomed US hails China's decision on exchange rate reform
          China's move on yuan reform widely welcomed EU welcomes China's exchange rate regime reform
          China's move on yuan reform widely welcomed Canada hails China's decision on RMB exchange rate reform

          "China'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," said Obama in a statement.

          The IMF chief noted that China's move "will help increase?Chinese household income and provide the incentives necessary to re-orient investment toward industries that serve the Chinese consumer."

          The European Union said "such a move will be beneficial for both the Chinese economy and the global economy," adding that the move would not only benefit China's own economy but also the economy of the world as a whole.

          "The implementation of the decision will help achieve more sustainable growth in the global economy, contribute to reduce external imbalances and strengthen the stability of the international monetary and financial system," the 27-nation bloc?said in a statement.

          The statement even hailed the move as "providing an important contribution to the success of the G20 Toronto summit."

          US Treasury Secretary Timothy Geithner also welcomed China's decision to further reform its exchange rate mechanism and expected further cooperation with his Chinese counterpart within G20 to promote the economic recovery.

          His views were shared by Canadian Prime Minister Stephen Harper.

          "This is an important step forward and its full implementation will contribute to strong, sustainable and balanced global growth," Harper said.

          "We look forward to additional steps by G20 countries at the Toronto summit to improve the economic prospects of all of our citizens," he added.

          The People's Bank of China, the country's central bank, made the announcement ahead of the G20 summit which focuses on bettering international economic governance.

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