China should move quicker in regard to deregulating its currency, says Treasurer Joe Hockey.
Australia wants China to move quicker to deregulate its currency.
Treasurer Joe Hockey is in Washington for a meeting of the Group of 20 nations’ finance ministers, ahead of Brisbane hosting the leaders’ summit in November.
US Treasury secretary Jack Lew said in an interview just before the meeting that China needed to get back on a path of a market-determined exchange rate.
Mr Hockey said all nations should be encouraging China to move to full deregulation and open trading of its currency.
“The Chinese government has come a very long way in a relatively short period of time in relation to the renminbi and importantly in opening up the Chinese economy,” Mr Hockey told CNBC.
“We all want it to move quicker but when you reflect carefully on what has happened over the last decade, there has been a lot of movement.”
Mr Hockey said he was more bullish about the future of the Chinese and European economies than some other finance ministers.
“There will be a recovery,” he said.
“The question is how we can facilitate that without creating dislocations that continue to create further instability in capital markets.”