Barack Obama on the 24th of the increased exchange rate flexibility in China announced welcomed and noted that the United States does not expect 20% appreciation of the yuan overnight.
Obama day in and visiting Russian President Dmitry Medvedev held a joint press conference to respond to the question on the RMB exchange rate made this statement.
Obama said that China decided to increase the exchange rate flexibility is a positive step. The United States will continue to monitor exchange rate movements track. If the appreciation of the RMB exchange rate within a year to a certain extent, then, not only on the U.S. economy, China's economy and benefit the world economy.
However, Obama admits, the United States does not expect the yuan revaluation of 20% overnight, because "the global currency markets and that will cause serious damage to China's economy."
Obama said that increased exchange rate flexibility in China's first signs are optimistic, but at the moment to help evaluate the progress is sufficient to re-balance the global economy, be premature.
In his speech, also noted that the surplus countries should increase domestic demand, while the United States, the level of high deficit countries need to seriously consider the control of debt.
Bank of China spokesman on the 19th that, under domestic and international economic and financial situations and the Chinese balance of payments, Bank of China decided to further promote the RMB exchange rate formation mechanism reform, enhance the flexibility of RMB exchange rate. The spokesman also said the People's Bank will further play to market in the allocation of resources based on role, and promote basic balance in international payments and maintain a rational and balanced RMB exchange rate basically stable level, and safeguard macroeconomic and financial market stability .
