Alexander Swoboda, professor of international economics at the
Graduate Institute of International Studies in Switzerland and
former IMF senior policy advisor, said China should resist external
pressure for currency revaluation.
He took the opportunity at the International Finance Forum on
Thursday to say that the current pace of reform of the exchange
rate scheme should be maintained because the banking sector and
securities market are not prepared to shoulder a floating exchange
rate.
A recent IMF report suggested China should widen the range of
variability in its currency's exchange rate. There has also been
pressure from some countries for revaluation of the yuan.
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If China took a hasty move now, it would cause instability for the
economy, said Nobel laureate Robert Mundell, a professor of
economics at Columbia University.
Neil Hughes, advisor to the World Bank, said that China should
not be blamed for the big US trade deficit, which has instead been
a longtime characteristic of its economy.
The central bank recently confirmed that it would continue to
take a "gradual and safe" approach to loosening the yuan-dollar
peg.
(China Daily November 12, 2004)