Monday, December 8, 2008

Yuan Watch : Reform means 'stable' rates

(Stable rates suggests a depreciating yuan against an appreciating dollar. Charts imply that the dollar is not tired of appreciating...-AM)

12.04.08, 11:33 PM EST
BEIJING, Dec 5 (Reuters) - China will stick to the long-standing policy of gradual currency reform to keep the yuan's exchange rate basically stable, a senior finance ministry official said on Friday.

At the Sino-American 'Strategic Economic Dialogue', the United States called for China to let the yuan trade more freely and to rise more quickly. Zhu Guangyao, assistant minister of the Finance Ministry, told reporters that the yuan has risen more than 20 percent against the dollar since July 2005.

'We want to see stable exchange rates in major global currencies such as the dollar, euro and the yen. And we will stick to our gradual principle in yuan reform,' he said.

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