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Xinhua: Devalue the RMB or Control the Pace of RMB Appreciation?

On January 3, 2100, the International Herald Leader, a newspaper under Xinhua News Agency, published an  article titled “The Currency War, Win the Two Battles inside and Outside (of China).” It included several interviews.

Tan Yaling, President of the China Foreign Exchange Investment Research Institute, told Xinhua reporters, “I would like to take the initiative to devalue the RMB, choosing a good time to take action, so as to remove any expectations for RMB appreciation. We cannot let the expectation for RMB appreciation kidnap public opinion in the market and (affect our) policy parameters.”

Guo Tian Yong, Professor of the Central University of Finance and Director of the China Banking Research Center, said, “Substantial appreciation of the Renminbi in the short term is the ‘dog in the manger.’” In his opinion, China should control the pace of RMB appreciation and “let the RMB appreciate modestly and gradually.”

Source: International Herald Leader, January 3, 2011