Yuan comes under pressure

08:26, January 29, 2010      

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By Qiu Wei

Calls for appreciation of the Chinese currency were renewed Thursday at the World Economic Forum in Davos, despite Beijing's explicit resolve to keep the yuan stable and allow it to float at its own schedule and pace.

At the annual gathering in the mountainside village in Switzerland, political leaders, bankers and financiers also seemed to share mounting concern over whether China was able to tackle an overheating economy.

Financier George Soros told reporters Thursday that the renminbi should "appreciate for the benefit of China and the world," the Wall Street Journal reported.

"The case for revaluing the renminbi is getting stronger and stronger," he was quoted as saying.

Soros also expressed scepticism about whether China would beat asset bubbles build-ing up in its economy.

"The jury is out," he said of China's efforts to contain high property prices and credit. The campaign will be "a major test for the Chinese government," AFP reported him as saying.

Chinese Vice-Premier Li Keqiang said Thursday that Beijing was ready to adapt its monetary policies to changing circumstances, and that it was confident of maintaining its rapid growth, according to AFP.

"We will maintain continuity and the stability of our macro-economic policies, continue to follow a proactive fiscal policy and moderately easy monetary policy and make our policies better targeted and more flexible in response to new circum-stances," Li said at the Davos forum. He was also upbeat that China's economy would continue its rapid growth.

"We are confident that we can ... maintain the steady and fast growth of the Chinese economy," he added

At an earlier panel, the deputy governor of China's central bank, Zhu Min, defended the country's currency policy, emphasizing the importance of the stability of the renminbi.

"It's very important to have a stable yuan, particularly in this very volatile market," he said, adding it is "good for China (and) also good for the world."

A fellow panelist, Barney Frank, chairman of the House Financial Services Commit-tee, followed by saying that the yuan can be stable just a bit higher in value, according to the Wall Street Journal.

In a speech on the first day of the forum Wednesday, French President Nicolas Sarkozy made a veiled attack against China, AFP reported.

Source:Global Times

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