Masahiro Kawai Exchange Quotations

We are suggesting greater exchange rate flexibility for certain countries which are accumulating larger amounts of foreign reserves.

Perhaps China is accumulating too much foreign exchange reserves.

Experience in many countries tells us that by accumulating foreign exchange reserves, eventually the monetary policy consequences could be big.

Allowing a little more currency appreciation can be quite desirable for the sake of the Chinese economy and the region as a whole. The Chinese economy is quite resilient. At the same time, foreign exchange reserves are rising fast.

The individual exchange rates won't be supported officially...but if this index is relatively stable vis-a-vis external currencies then it's quite useful.