Beijing, Aug 06: Despite mounting international pressure on China to devalue its currency, Renminbi, Premier Wen Jiabao and the Chinese Central Bank have expressed resolve to maintain a "stable" and "prudent" exchange rate, the official media reported today. Wen said that China will keep the exchange rate of its currency stable in the coming months as it will help maintain world economic and financial stability, and at the same time, sustain China's own development. Meeting a Citi-group delegation headed by chairman Robert Rubin here yesterday, Wen said his government has noted some concern on the Renminbi's rate, and the government has been "prudent" and "responsible" for rate fluctuation. Wen said that a state's currency rate system and policy must accord with its own economic development level, its current economic performance and its balance of payment. He pointed out to Rubin, the former US Treasury Secretary, that during the 1997 Asian financial crisis when the currencies of many Asian countries and regions were drastically devalued, China vigorously maintained its currency stable, which contributed greatly to Asian and world economy.
The US, Japan and South Korea have called on China to let the Renminbi appreciate. They said the currency is undervalued and is increasingly making China's exports cheaper as the US dollar, to which the Yuan is pegged, keeps weakening.
Bureau Report