US urges China to keep mov­ing to a mar­ket-ori­ented ex­change rate

The Pak Banker - - FRONT PAGE -

US Trea­sury Sec­re­tary Jack Lew said on Sun­day that it was crit­i­cal for China to con­tinue mov­ing to­ward a more mar­ket-ori­ented ex­change rate and clearly com­mu­ni­cate its ac­tions to the mar­ket.Lew made the re­marks dur­ing a meet­ing with Chi­nese Vice Premier Wang Yang in Bei­jing, fol­low­ing the G20 fi­nance min­is­ters' sum­mit in Shang­hai.

"As the global econ­omy faces many chal­lenges, our open and frank com­mu­ni­ca­tions are more im­por­tant than ever, and we must con­tinue to work to­gether for the ben­e­fit of both of our na­tions," Lew said. "We wel­come China's ef­forts to tran­si­tion to a more con­sump­tion­driven econ­omy, in­clud­ing through fis­cal poli­cies that sup­port house­hold de­mand and ac­tions that re­duce ex­cess in­dus­trial ca­pac­ity. We also look for­ward to see­ing con­tin­ued re­forms in the fi­nan­cial sec­tor that also strengthen fi­nan­cial sta­bil­ity," he added.

"It is also crit­i­cal that China con­tinue to move to­ward a more mar­ket-de­ter­mined ex­change rate and trans­par­ent ex­change rate pol­icy in an or­derly man­ner and clearly com­mu­ni­cate its ac­tions to the mar­ket."

The world's top economies de­clared on Satur­day af­ter the meet­ing that they need to look be­yond ul­tra-low in­ter­est rates and print- ing money to shake the global econ­omy out of its tor­por, while re­new­ing their fo­cus on struc­tural re­form to spark ac­tiv­ity.

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