Premier Wen says China will keep yuan "basically stable"

08:25, March 15, 2010      

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Chinese Premier Wen Jiabao reiterated on Sunday that China will stick to a stable yuan and opposes other countries pointing their fingers at its currency policy, despite increasing pressures on yuan appreciation.

"A country's exchange rate policy and its exchange rates should be decided by its national economic situation," Wen said while meeting the press after the annual parliament session.

Wen said China will further improve the yuan exchange rate formation mechanism and keep the yuan exchange rates basically stable at a reasonable and balanced level.

Foreign pressures will not help the currency reform, the Premier said.

He said a stable yuan has played an important role in facilitating the recovery of the global economy from the worst financial crisis in decades.

China began its currency reform to unpeg the yuan against the U.S. dollar in July 2005, the yuan has appreciated 21 percent against the U.S. dollar, or 16 percent in real terms, Wen said.

"We did not depreciate the RMB from July 2008 to February 2009 when the global economy was in extreme trouble, but it appreciated in real terms by 14.5 percent," he told hundreds of domestic and foreign journalists.

During this period, Wen said, China's exports fell by 16 percent but imports only dropped 11 percent and its trade surplus decreased 102 billion U.S. dollars.


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