China’s central bank said the G20 summit next week needed to discuss currency reform amid concern US policies may weaken the dollar, hurting owners of assets denominated in the currency.
“We expect world leaders to pay more attention to reforming the global currency system,” Zhang Jianhua (張建華), head of research at the People’s Bank of China, told an economic forum in Beijing yesterday. “The dollar is facing a big problem and US policies will potentially weaken the currency.”
Chinese Central Bank Governor Zhou Xiaochuan (周小川) this week called for the creation of a new international reserve currency. His comments prompted US Treasury Secretary Timothy Geithner to defend the dollar’s status.
China will “closely monitor whether and how the Federal Reserve will soak up increased liquidity” to avoid spiraling inflation and currency weakness, Zhang said.
G20 leaders meet next week in London to look for ways to alleviate the global financial crisis and strengthen international regulation.
“Though China is not yet ready to play a leading role in the summit, we will definitely be an important participant,” Zhang said. “Governor Zhou’s super-sovereign reserve currency proposal may not be unanimously recognized, but if it can lead to a greater range of discussions at the G20, that’s also a success.”
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
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