Saturday, June 19, 2010

China statement: "To proceed with exchange rate reform"

by Bill McBride on 6/19/2010 08:48:00 AM

From Bloomberg: China Yuan Pledge Suggests Peg to Dollar May Go

Here are some excerpts from the statement (via WSJ):

In view of the recent economic situation and financial market developments at home and abroad, and the balance of payments (BOP) situation in China, the People´s Bank of China has decided to proceed further with reform of the RMB exchange rate regime and to enhance the RMB exchange rate flexibility.
...
The global economy is gradually recovering. The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability. It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility.
I'll believe it when I see it ...