China’s central bank (People’s Bank of China) reacted to the IMF’s recent new surveillance mechanism allegedly targeted for China’s currency intervention (or manipulation, if you like). China emphasized that any solution for this problem should be based on “mutual understanding and respect” rather than being imposed. It also highlighted that “developing countries” perspectives should be taken into account and warned that any hasty prescriptions might generate more problems. (“An unregulated and massive adjustment will not only worsen external instability, but also influence the sustainability of domestic economic growth, and therefore global growth and the stability of international financial markets.”)
See Financial Times, China warns IMF over renminbi, June 21, 2007, http://www.ft.com/cms/s/4f8c027e-1f5b-11dc-ac86-000b5df10621.html
