Prime Minister Junichiro Koizumi said Friday a revaluation of the yuan would be desirable for China, a day after U.S. President George W. Bush urged China to conduct further reform of its exchange-rate regime.
“I think it will benefit China in various ways in the future,” Koizumi told reporters.
In a Thursday meeting with Bush in Washington, Chinese President Hu Jintao pledged to advance reform of his nation’s exchange-rate regime, while Bush urged further appreciation of the currency.
Beijing removed the yuan from a tight peg to the dollar last July, linking it to a basket of foreign currencies instead.
While the yuan has risen about 3 percent since then, critics say the rise is too small and China still enjoys unfair trade advantages.