China to resist push on yuan policy

Source: PressTV
http://www.presstv.ir/detail.aspx?id=127077§ionid=351020404


With intensifying US pressure on China to raise the value of its yuan, Beijing says it will not succumb to an outside force to revalue its currency.

Chinese Assistant Finance Minister Zhu Guangyao dismissed speculations on Thursday that the upcoming trade talks between US and China would lead to a speedy yuan appreciation.

"Only the authorities of a sovereign country have the right to decide how to form the exchange rate," he said.

Countries should "work to maintain the stability of exchange rates between currencies so as to create a favorable environment for the global economic recovery," he added.

Critics argue that the yuan is artificially undervalued, adding that such low rating keeps exports relatively cheap granting Chinese exporters an unfair advantage over their rivals.

Earlier in March, the Governor of People's Bank of China Zhou Xiaochuan said China would eventually shift away from its special exchange rate policy.

However, with the global financial uncertainty caused by the euro zone sovereign debt crisis, China seems less prepared to allow its currency to rise against the dollar.