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Sunday, June 26, 2005

BBC NEWS | Business | China says no to yuan revaluation

BBC NEWS | Business | China says no to yuan revaluation China says no to yuan revaluation
By Rupert Wingfield-Hayes
BBC News, Beijing

China's Prime Minister Wen Jiabao has said there is no hurry to revalue the country's currency, the yuan.

Speaking to a meeting of European and Asian finance ministers in China on Sunday, Mr Wen said a stable yuan is in the interests of China and the world.

He told European finance chiefs a stable yuan helps world financial stability and the growth of trade.

But the US thinks otherwise, and for months Washington has pressed China to increase the value of its currency.

Once again, China's government is making it clear it will not be pushed into revaluing its currency.

The US says the current value of about 8.3 to the US dollar is artificially low.

That in turn makes Chinese goods artificially cheap and distorts world trade patterns, Washington says.

Whatever the rights and wrongs of this argument, China appears to be sticking to its position.

Any revaluation of the yuan will be done gradually and when China decides, not when Washington or anyone else demands it.
Story from BBC NEWS:

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