China's Currency Moves

China's 100 yuan, or renminbi, notes, the largest denomination in Chinese currency. (Frederic J. Brown/AFP/Getty Images)

NEW YORK, June 22, 2010 - "The Chinese central bank's announcement that it would begin a managed float of China's currency is only a first step in a process for making the yuan, or renminbi, convertible at free market rates," says Asia Society Executive Vice President Jamie Metzl.

"Because the conditions surrounding this move are opaque at best, the United States and the international community should judge China more by how quickly the Chinese currency moves toward fair market convertibility than by Chinese government statements," Metzl explained. "In short, this is a positive step but doesn't yet fix the global problem of a highly undervalued yuan. The international community's mettle on this issue will be tested this weekend at the G20 meeting in Toronto."

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