China’s government policy to let the value of flexible yuan against the U.S. dollar may strengthen the competitiveness of non-China products are exported to that country. Indonesia to get a good opportunity to strengthen its export to China. Decision of the Government of China is planning to open yuan welcomed by countries in the world. Because before, with the yuan is pegged to the U.S. dollar, China became highly competitive products. I think this will get a positive response to the step of China is in the G-20 meeting in Toronto, said Agus Martowardojo Minister of Finance in Jakarta, Thursday (24 / 6). According to Agus, the government will encourage domestic industrial activities to be more active to increase exports.
With the strengthening of the yuan, China also noted that the current world situation began to crawl to recover due to the global economic crisis. The strengthening of domestic industries is the only key. Value of yuan had been pegged at 6.7 yuan per U.S. dollar. China since the days Monday to let the yuan more flexible. Yuan value is estimated to be strengthened to be 6.67 Yuan per U.S. dollar. However, the yuan is still at the level of 6.8 yuan per U.S. dollar. For exports, we will begin preparing for the strengthening of the domestic industry first, he said.
The strengthening of domestic industries is the only key. Indonesia will be forced to enter the competition to export to China so that in time will encourage economic growth developing countries. Therefore, the government hoped Indonesia and China’s trade balance can be maintained balance. However, not only with China, at the global level is also done the same thing. During this (government policies that deliberately weaken China’s yuan) complained many great nations and trading partners China, said Agus.
Chief Economist, Bank Mandiri said Mirza Adityaswara, announcements related to the release of China’s yuan was done on June 19, 2010. China will return to his old abandoned monetary policy since 2008 as part of the global financial crisis. The strengthening of domestic industries is the only key. One implication of this policy is that they allow the strengthening yuan against the U.S. dollar 2-3 per cent. This step will reduce inflationary pressures in China and at the same time developed countries will boost exports to China.
The pace of China was apparently done to demonstrate to the leaders of member countries of the G-20 group will meet this week (in Toronto, Canada, 26-27 June 2010) that country to cooperate on restructuring the world economy experiencing global imbalances. The strengthening of domestic industries is the only key. The strengthening yuan will usually be followed by the strengthening rupiah, he said.
