China faces tough choice on currency issue

Nier Meller, a bank strategist at New York Mellon, said the recent upturn in U.S.-China relations is an important step towards a renminbi exchange rate adjustment, but Chinese policymakers must judge whether it is the right time to take risks in China's export competitiveness. China's Ministry of Commerce has openly objected to any recent adjustments. Now the higher-ups may have listened to their views, "he said. "The truth is that exports are an integral part of China's growth strategy, and the stability of the renminbi is an important factor in achieving this strategy."　　"The doubts about the currency adjustment in the market are clear ——— the renminbi forward contracts for each delivery period have fallen to full gains since the beginning of this month," he said.　　But he said recent signs still suggest some form of adjustment to the renminbi as a first step towards China's continued growth in its reserves ——— it will also help China curb inflation. "China faces tough choices. is to ignore the adjustment to the exchange-rate regime, pointing to potential harm to a key element of its economic recovery ——— China-US relations will be xiande in the process, or a policy move that has long been awaited but never properly timed. "For the world's third-largest economy, this dilemma will not become easier." "Analysts believe the European debt crisis will be a key factor in the recent decision to adjust the renminbi's exchange rate."　　The news that China's top brass agreed on a small appreciation in April, but the sudden Greek debt crisis disrupted the plan. "According to the FT article comprehensive analysis" (Southern Metropolis Daily Www.nddaily.com