China Finance Review

Goldman Sachs Chief Economist: China may soon allow the yuan to appreciate

16th February, 2010

According to the U.S. mainstream media Sunday (February 14) reported that Goldman Sachs Group (Goldman Sachs Group Inc., GS) chief economist Jim O’Neill said he believes that China will revalue its currency.

Since the outbreak of the global financial crisis, China’s revaluation of the RMB exchange rate after the slow pace of stagnation in the global economy, the China’s exports severely depressed for some time and Chinese authorities holding the RMB exchange rate stable is too obvious.

O’Neill said that in order to avoid the economy overheating, the Chinese yuan might be allowed to rise up to 5%.

Media quoted O’Neill as saying that China needs to take measures to slow down the growth, and needs to respond to a series of consequences caused by  the inflation.