Uri Dadush, World Bank Director for Global Economic Prospects, said at the press briefing in Beijing for Global Development Finance 2005, that there was no need for consideration of the appreciation of the Chinese currency. He does not see great pressure for stronger yuan in terms of trade. He agrees that China should build a better, more stable exchange rate system for its RMB.
While insisting that the World Bank does not make precise forecast for exchange rates of various currencies, Mr. Dadush thinks there is still room for a depreciation of USD by 5 percent to 10 percent in the next two or two and half years. He argues that the mega-deficit of US current account cannot sustain long but would not change a lot in the foreseeable future.
By People's Daily Online