ECB’s Bini Smaghi: China must let currency fluctuate

ECB’s Bini Smaghi says China must let its currency move freely.

In a speech at the Libera University for Social Studies the official said “In the future, if we want to avoid international imbalances repeating themselves, it is necessary that countries with systemic impact, like China, adopt their own monetary policy and allow their exchange rate to fluctutate in the basis of competitiveness.”

Bini Smaghi also said the link between the Chinese and U.S. currencies has become more acute again, as the dollar has depreciated recently.