Shao: RMB appreciation will bring the bubble of foreign exchange reserves

March 20 Morning News Shao, director of the Center for Public Policy Studies at Tsinghua-Brookings, said today in the gap between China's top development forum, the renminbi's appreciation has a small role in addressing U.S. employment and global trade imbalances.　　A stronger renminbi would create a bubble in foreign exchange reserves. Shao said that China's past experience with the appreciation of the renminbi and Japan's experience have proved that the appreciation of the renminbi has a small role in addressing U.S. employment and global trade imbalances.　　The currency issue is politicized and cannot fundamentally solve America's deficit with China. "China needs to adjust its structure and shift its structure from an over-reliance on external demand to a structural change in domestic demand, and the exchange rate plays a very limited role." At present, some of the export enterprises such as the environment, labor costs are not taken into account, if the appreciation of the renminbi will be a blow to exports. Increasing consumption should start with liberalizing resource prices, raising workers ' wages and moderate inflation.　　"Shao said. Shao stressed that if the revaluation of the renminbi is beneficial to speculators, this will bring the bubble of foreign exchange reserves, it is not normal. In addition, Shao said, the future of the international reserve currency will not be a single currency, but several major currencies coexist in the International monetary Reserve System. (Snow ting from Beijing)