RMB appreciation bodes its own time
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The appreciation of China's Renminbi (RMB), despite much media fanfare as well as pressure from the international community, should bode its own time, said a former central bank official in Beijing on the sidelines of the annual session of the National People's Congress, the nation's top legislature.
"RMB is deemed devalued by western countries because the costs of China's raw materials and labor forces are lower than international standards," said Wu Xiaoling, former Deputy Governor of the People's Bank of China, and also Deputy Chairwoman of the Financial and Economic Affairs Committee of the National People's Congress.
"Once the costs rise to the international baselines, the RMB will be not deemed devalued," she said.
"The RMB appreciation is not an issue of any specific date, but rather when the opportunity will come," Wu said.
The Chinese currency has remained largely unchanged against the dollar since July 2008, as the country was hit hard by the global financial crisis.
"But as China is gradually coming out of the worst crisis, the government will take more heed on the currency reform," the former banker added.
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