Firm yuan helps global trade
Source: Xinhua |
January 8, 2010, Friday
|
Print Edition
Print Edition
CHINA'S Commerce Minister Chen Deming yesterday said in Ankara the stability of the yuan contributes to the recovery of the world economy while voicing concerns over the strength of the United States dollar.
"The Chinese government has stated on many occasions it will keep the exchange rate of the yuan basically stable," said Chen during a visit to the Turkish capital.
"We feel that is an important support and contribution for the world economy, which is undergoing a crucial period of recovery."
An unstable yuan would have a great impact on global trade as China's trade volume accounts for about 10 percent of the world's total, Chen told a joint press conference with Turkish State Minister for Foreign Trade Zafer Caglayan.
China's major trade partners have complained about an undervalued yuan, which they said give price advantages for Chinese exports. The yuan has gained more than 21 percent against the greenback since the currency was unpegged from the US dollar in July 2005.
Chen said China will press ahead with reforms for a controllable, freely floating yuan exchange rate, while reiterating China's concerns about the value of the US dollar.
"Recently we're more concerned about whether the US dollar can maintain its stability and strength, as China holds a large amount of US dollar-denominated bonds," said Chen.
China is the biggest holder of US Treasury securities, with its holdings totaling US$798.9 billion as of the end of October last year, according to Treasury data.
Caglayan, who met Chen yesterday, said the two sides had discussed the possibility of using local currencies in bilateral trade and China's purchase of Turkish bonds.
Chen said China is experimenting with the yuan settlement with countries which have relatively balanced bilateral trade with China and that the practice will be expanded.
China announced in December that it would start allowing yuan settlement of international accounts on a trial basis.
"The Chinese government has stated on many occasions it will keep the exchange rate of the yuan basically stable," said Chen during a visit to the Turkish capital.
"We feel that is an important support and contribution for the world economy, which is undergoing a crucial period of recovery."
An unstable yuan would have a great impact on global trade as China's trade volume accounts for about 10 percent of the world's total, Chen told a joint press conference with Turkish State Minister for Foreign Trade Zafer Caglayan.
China's major trade partners have complained about an undervalued yuan, which they said give price advantages for Chinese exports. The yuan has gained more than 21 percent against the greenback since the currency was unpegged from the US dollar in July 2005.
Chen said China will press ahead with reforms for a controllable, freely floating yuan exchange rate, while reiterating China's concerns about the value of the US dollar.
"Recently we're more concerned about whether the US dollar can maintain its stability and strength, as China holds a large amount of US dollar-denominated bonds," said Chen.
China is the biggest holder of US Treasury securities, with its holdings totaling US$798.9 billion as of the end of October last year, according to Treasury data.
Caglayan, who met Chen yesterday, said the two sides had discussed the possibility of using local currencies in bilateral trade and China's purchase of Turkish bonds.
Chen said China is experimenting with the yuan settlement with countries which have relatively balanced bilateral trade with China and that the practice will be expanded.
China announced in December that it would start allowing yuan settlement of international accounts on a trial basis.
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