When and how the exchange rate of Chinese Yuan should be adjusted must be decided by the Chinese government, the president of the Asian Development Bank (ADB) said last Saturday.
Addressing the opening press conference of the 43rd annual meeting of the ADB’s Board of Governors, Haruhiko Kuroda said the yuan issue was “up to the Chinese authorities to decide.”

Meanwhile, Kuroda also said it was up to Chinese authorities to decide how and when to implement exit strategies.

Kuroda acknowledged China played a leading role in the recovery of the Asia-Pacific region from the global financial crisis thanks to the 8.7% growth of its gross domestic product (GDP) last year.

Kuroda said the Chinese economy would maintain a high growth rate, with a forecast of 9.6% of GDP growth this year and 9.1% next year.

Despite the fact that China’s substantial fiscal measures were not the same as those implemented during the crisis, Kuroda believed that sooner or later the government would mull over an exit from these measures given the strong economic growth.

Besides China, all Asian countries should carefully time their exit strategies to unwind their anti-crisis fiscal and monetary policy measures, he said.

The ADB began its 43rd annual meeting on Saturday with a pivotal focus on poverty, climate change and regional integration. It is the first time the ADB held its annual meeting in a Central Asian state.—Paul A. Ebeling, Jnr. www.livetradingnews.com

Posted by Shayne Heffernan on May 5th, 2010and filed underBRIC, Equities, Latest News, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site