From Reuters:
Currency appreciation alone may not wipe out China’s trade surplus, while exchange rate reform without structural adjustments will hamper growth, Wu Xiaoling, deputy governor of the People’s Bank of China, said on Friday.
“To solely adjust the exchange rate in the absence of restructuring policies will hurt the real economy and global growth,” she said.
In a speech at the Peterson Institute for International Economics, Wu said the past experience of Japan and Germany shows that gains in the value of a currency don’t always eliminate a trade surplus. [Full Text]
Read also G7 squeezes China, warns of growth slowdown, Paulson backs ‘strong dollar’; urges Chinese action on yuan by AFP.
