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Economy

IMF welcomes China's decision on further exchange rate reform

(Xinhua)
Updated: 2010-06-21 10:19
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WASHINGTON - The International Monetary Fund's chief Dominique Strauss-Kahn on Saturday welcomed China's decision to further reform its exchange rate mechanism and said that the move will benefit Chinese consumers.

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China's announcement is "a very welcomed development," Strauss-Kahn said in a statement.

The move "will help increase Chinese household income and provide the incentives necessary to reorient investment toward industries that serve the Chinese consumer," he said.

The People's Bank of China, China's central bank, earlier on Saturday announced a decision to proceed further with the reform of the exchange rate regime to enhance the flexibility of the RMB's exchange rate.