Eurogroup Welcomes China Currency Changes
The European Central Bank (ECB) and the President of the Eurogroup Jean-Claude Juncker have welcomed China's decision to further liberalise the exchange rate regime of the Renminbi (Yuan) and to enhance the flexibility of the RMB exchange rate.
"The euro area continues to have a clear interest in a strong and stable international financial system, as excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability," they said in a joint statement.
Given China's important role in the global economy, the Eu encourages greater flexibility of the RMB effective exchange rate as a means of promoting balanced growth in China and in the world economy, said the ECB head.
The renminbi has in effect been pegged to the dollar since July 2008, as China has sought to insulate its export sector from the financial crisis. That policy has come under attack in the west, especially in the US.