Latest News:  
Beijing   Cloudy/Sunny    4 / -7   City Forecast

People's Daily Online>>China Business

China push for yuan flexibility

By Louise Ho (Shanghai Daily)

09:33, December 29, 2011

CHINA will continue to push for an increasingly flexible yuan exchange rate and boost domestic consumption, a foreign ministry spokesman said yesterday after the United States Treasury declined to name China as a currency manipulator.

Since June last year, the yuan exchange rate had become increasingly flexible, spokesman Hong Lei said at a daily news briefing in Beijing.

China's foreign trade is balanced overall and the percentage of trade surplus to GDP is declining, he said.

The nation's current account surplus has been dropping as a percentage of GDP, according to official figures.

In the first three quarters of this year, the surplus was 3 percent of GDP, compared to 5.1 percent in the same period of last year.

"China is going to continue to increase flexibility in the yuan exchange rate and encourage domestic consumption," Hong said.

In its semi-annual report to Congress on the currency policies of major trading partners, the US Treasury said the yuan was still undervalued although it did not label China as a currency manipulator.

The Treasury said that with China's US$3.2 trillion foreign exchange reserves and current account surplus, "the real exchange rate of the renminbi is persistently misaligned and remains substantially undervalued." In recent years, the US has been putting pressure on China to make the yuan exchange rate more flexible.

Some US politicians argued that the yuan's undervalued exchange rate gave Chinese exports an unfair advantage in overseas markets.

【1】 【2】

Email|Print|Comments(Editor:王莉莉)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Workers set up Chinese red lanterns around Temple of Heaven

  2. Wall Street ends flat for year despite a big volatile year

  3. In Pictures: Iranian naval maneuvers enter 7th day

  4. As Spring Festival coming, more than 100 migrant workers still stay in Zhengzhou

Most Popular

Opinions

  1. Japan's case of flawed priority
  2. Move to send 'alarming signal' across Asia
  3. EU's airline carbon tax may backfire
  4. Asian countries refuse to 'take side'
  5. US uses 'hedging strategy' to deal with China's rise
  6. What is behind US 'Return-to-Asia' strategy?
  7. China's GDP growth may slow to 8 pct in 2012
  8. China's economy not to suffer a hard landing
  9. Common interests prevent 'Cold War'
  10. War-related carbon emissions deserves attention

What's happening in China

As Spring Festival coming, more than 100 migrant workers still stay in Zhengzhou

  1. Beijing tourism realizes great lead forward
  2. Panda shows carnivorous side
  3. Local governments quiet on housing restrictions
  4. Shenzhen finds cancer-causing mildew in food
  5. China busts counterfeit drug racket

PD Online Data

  1. Traditional Mooncakes
  2. About Mooncakes
  3. History of Mooncakes
  4. Modern Mooncakes
  5. Legends of Mid-Autumn Festival