China will gradually relax restrictions on the use of the yuan, but changes in the exchange rate will not solve in huge trade imbalance with the United States, said the deputy governor of the People’s Bank of China Hu Xiaolian Tuesday.
In an interview with The Wall Street Journal, Hu also said he believes the global economy continue to recover, albeit slowly, and it is not expected to return to a state of recession. This is good news for online investing for dummies traders who are counting on a steady global recovery as the basis for all future investment decisions.
“The global economy is still recovering,” said Hu. “Of course, there is some volatility, but not cause a double dip. The recovery will be a little slow.”
Hu, the most influential vice president of the five vice presidents who operate under the bank’s president Zhou Xiaochuan, was adamant in rejecting the criticism of China’s exchange rate. The frustrations over the pace of yuan appreciation against the dollar are becoming a resurgence in the U.S. after the new currency policy of China, filed on June 19 failed to win more than a marginal appreciation of Chinese currency.
“My perspective is that the yuan does not have a key role in balancing the bilateral trade between the U.S. and China,” Hu said. “I do not think too much debate on this issue help.”