China Must Allow The Yuan To Rise And Fall Freely.

Jacob Lew, the US Treasury Secretary, said that the overvaluation or undervaluation of the renminbi does not always get a simple answer.

He pointed out that China must allow the renminbi to rise and fall freely in the market.

He said: "when the RMB appreciation pressure, the renminbi must be

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When the RMB is under devaluation pressure, we can not complain about its depreciation. "

Lew said China's monetary policy lacks communication, making it difficult for investors to understand what China's policymakers want to achieve.

The interview with governor Zhou Xiaochuan of the Central Bank of China is very important for explaining policies.

Zhou Xiaochuan, the governor of the Central Bank of China, broke the silence for several months, saying that the RMB did not have the basis of sustained depreciation.

In an interview with Caixin, Zhou Xiaochuan stressed that there is no foundation for sustained depreciation of the RMB, and that the trend of exchange reform is unwavering, but "we are patient."

For the upcoming G20 summit in Shanghai, Lew predicts that the G20 conference will not produce an urgent policy to deal with fluctuations in the global market.

He called on all countries to introduce more measures to stimulate demand rather than adopt unfair monetary policy.

Lew said in an interview with Bloomberg Television: "do not expect to respond to crises in a non crisis environment.

Now, in some ways, the real performance of the economy is better than that of the market. "

Wall Street's knowledge was mentioned earlier.

Discussions will be made on the coordination of foreign exchange reserves, regional emergency financing agreements, central bank swap quotas, or a small-scale agreement for non developed economies.

The United States will urge countries to increase fiscal spending to stimulate global demand and avoid manipulating exchange rates for competitive devaluation.

Zhou Xiaochuan's ability to unravel the market's confusion over China's monetary policy will be a major focus.

However, this conference may not introduce heavy plans to the G20 summit in London in April 2009.

At that time, the world's major economies launched a total of $1 trillion and 100 billion stimulus measures to rescue the then crisis.

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G20 finance ministers and central bank governors will be held in Shanghai from 26 to 27.

At that time, countries will discuss how to cope with the slowdown in global economic growth and the resulting global market turbulence.

Bloomberg said earlier that although the attitude of former officials has reduced the possibility of joint solutions to market turmoil, it is possible to reach a smaller range of agreements for non developed economies.

Lew's position has reduced cooperation among countries around the world, stimulating the global economy and reshaping market confidence.

Some analysts and investors have called for a modern version of the Plaza Accord, signed in 1985 by major global economies, devaluing the US dollar and stabilizing the foreign exchange market.