It is reported that China has again pushed back calls to let its currency rise with Mr Wen Jiabao Prime Minister of China warning that an appreciation in the yuan could hobble Chinese growth.
Mr Wen while speaking to reporters after a summit meeting with the European Union said the demands being made of Beijing to let the yuan strengthen are not fair.
He reaffirmed China determination to take its own, gradual steps with regards to the currency but said that for now the yuan also known as the renminbi would be kept steady.
Mr Wen said “In this international financial crisis of a kind rarely seen in history, maintaining the basic stability of the renminbi exchange rate has benefited China’s economic development and benefited world economic recovery. Now some countries on the one hand, want the renminbi to appreciate but, on the other hand, engage in brazen trade protectionism against China. This is unfair. In fact, it amounts to restricting China development.”
The EU had pushed China to rethink its currency position at the summit meeting, saying the weak yuan, combined with the weak dollar is hurting European exports. The three top economic officials representing the 16 EU members that use the euro pleaded Sunday for a renewed gradual rise in the yuan, which China has virtually pegged to around 6.83 per dollar since July 2008 to help its exporters weather the global credit crunch.
(Sourced from http://www.steelguru.com/news/index/2009/12/07/MTIzNjQy/China_pushes_back_against_calls_for_yuan_rise.html)
Sunday, December 6, 2009
China pushes back against calls for yuan rise
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