India happy over China's currency move: Pranab Mukherjee | india | Hindustan Times
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India happy over China's currency move: Pranab Mukherjee

india Updated: Jun 22, 2010 20:51 IST

India has welcomed China's decision to make its currency more flexible, saying it would help world trade.

"India is happy over China's announcement for its flexible policy as far its currency, Yuan, is concerned," Finance Minister Pranab Mukherjee said in response to a question at an interactive at a joint meeting India-US CEOs Forum in Washington on Monday.

"I am hopeful that China will follow the policy keeping in view the interest of the world economy," he said.

China has been criticised for keeping the yuan artificially undervalued to give the country an unfair advantage in international trade.

It is now believed that a stronger yuan will give the Chinese more purchasing power to buy foreign goods, which is good for world trade.

The People's Bank of China last weekend said that it would allow more flexibility in the Yuan, sending markets and currency based instruments soaring world over.

China's decision comes ahead of the G-20 meet in Toronto June 26-27, where the move is expected to ease pressure on the country when it comes to removing restrictive trade practices and bring in structural reforms in the financial sector.