OECD Secretary-General Donald Johnston welcomes China's exchange rate reform

21/07/2005 - OECD Secretary-General Donald Johnston has made the following statement in reaction to China’s announcement today to remove its currency’s fixed peg to the US dollar:

"I am very pleased to learn that China is moving ahead with exchange rate system reform, replacing the fixed peg to the US dollar by a managed float based on a basket of currencies. The OECD applauds this measure as an important step towards giving China’s economy the flexibility needed to support rapid and sustainable growth and continued integration with the world economy. This is in line with China’s determined efforts to build a market-based economy and is consistent with the recommendations of the forthcoming OECD Economic Survey of China due to be published on 16 September. "

For further information journalists are invited to contact the OECD’s Media Relations Division (tel:  +33 1 4524 9700)