Locke: China still needs to increase the flexibility of the RMB exchange rate
US Secretary of Commerce Gary Locke said recently that Chinese officials need to increase the flexibility of the RMB exchange rate to promote a rebalancing of the global economy. The renminbi should float freely and more rapidly, and the United States still hopes that China will make more efforts. As the candidate for the ambassador to China nominated by the Obama administration, Locke said at the Senate’s nomination hearing that the United States is satisfied with the recent appreciation of the renminbi, but believes that the renminbi is still undervalued. Chinese officials need to increase the flexibility of the RMB exchange rate to promote a rebalancing of the global economy. He also played down the impact of China's purchase of US Treasury bonds on US policy making, saying that China's holding of US Treasury bonds will in no way affect the formulation of US foreign policy.
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