The following are editorial opinions from newspapers from around the world which may be of interest to Royal Gazette readers.

The Asahi Shimbun, Tokyo, –on China's yuan and foreign currencies

China has agreed to be more flexible in allowing the yuan, also known as the renminbi (RMB), to appreciate against foreign currencies. This must not simply be a stopgap measure to alleviate friction between China and the United States. We hope this marks the first step toward a more balanced situation for China and the entire world.

The renminbi was allowed to appreciate in 2005, and, following a gradual rise, it was effectively pegged to the dollar. This was because China feared the effects of the financial crisis would dampen Chinese exports. However, the decision to keep the RMB exchange rate artificially low not only irritated the US and other major economies, but also led to inflation in China and the emergence of a real estate bubble.

While international pressure no doubt influenced China's decision, the latest announcement means that the Chinese themselves finally realised the necessity of the move. In this sense, the Chinese authorities' decision to allow the RMB to appreciate came too late, but was totally appropriate. ...

China's central bank can still intervene in the yuan market to regulate the exchange rate. So, if the appreciation is too small, the frustration of countries like the US will not dissipate. It is also disconcerting that while the People's Bank of China signalled its decision to allow more flexibility, it pointedly noted that China's current account surplus to gross domestic product rate is falling. The bank said there are no grounds for "large swings" in the currency. ...

There is no need for China, which will soon surpass Japan to become the world's second-largest economy, to develop a "strong yuan" phobia. Rather, if the appreciation of the RMB slows without good reason, then there will be no way to stop either inflation or the expansion of the asset-inflated economy. As a result, or in reaction to it, China's economy will suffer, and the damage will spread throughout the world.