Australian Treasurer Wayne Swan reiterated Tuesday that Beijing should float its currency as part of "structural reforms" to the global economy, as he met officials during a three-day visit to China. Australian officials in recent days have repeatedly urged the world's second-largest economy to strengthen the yuan and strive for the greater flexibility of market-based exchange rates.
"We've made our view very clear. We need to see market-based exchange rates," Swan told CNBC Asia television in an interview during a visit to Hong Kong, when questioned on the rise of the yuan against the US dollar. "Australia is a very strong believer in a floating currency and (it is) one of the structural reforms that we require in the global economy, particularly from large developing countries.
"That's part of dealing with the global financial imbalances - the... imbalances that cause the global financial crisis and then the global recession," he added. Officials argue that the undervalued yuan gives China an unfair trade advantage, with a weaker currency making China's imports more expensive while its exports are cheaper for foreign buyers.
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