LexisNexis(TM) Academic - Document
LexisNexis(TM) Academic - Document
Copyright 2004 AFX News Limited
AFX.COM
November 29, 2004 Monday
SECTION: ECONOMIC NEWS; MARKETS
LENGTH: 358 words
HEADLINE: China's Premier Wen Jiabao questions US currency management - report
DATELINE: BEIJING
BODY:
Premier Wen Jiabao launched an indirect attack on the US yesterday for failing to halt the slide in the dollar, while vowing not to revalue the yuan under pressure, the South China Morning Post reported.
The Hong Kong-based newspaper said Wen questioned the US government's management of its currency.
"China is a responsible country. We have ensured that the exchange rate of the renminbi remained stable during the 1997 Asian financial turmoil and, by doing so, contributed to the resolution of the crisis," Wen was quoted as saying on the sidelines of the Association of Southeast Asian Nations summit in the Laotian capital of Vientiane.
"Today, we have to ask a question. The US dollar is depreciating and there is no attempt to manage it. What is the reason for this? Shouldn't the relevant parties take measures?"
Wen described the revaluation of the yuan as a major economic issue that should not be carried out under pressure.
"(Revaluation) should be introduced when the timing is right. If society continues its rampant speculative activities on the yuan, like it is now, it will be impossible for us to introduce the measure," Wen said.
Changes to the exchange rate require certain conditions, he said.
"The most important is to have a stable macroeconomic environment, a healthy and complete market mechanism and a healthy financial system," he said.
"We must consider the effect on China's own economy and society, and must consider its impact on the region and the world."
Wen's remarks were echoed at home by central bank vice-governor Li Ruogu, who said China had no timetable for the reform of its currency exchange mechanism because it had no idea how long such a reform would take.
China's major trading partners are pressuring the government to revalue the yuan, which has been pegged to the US dollar for the last 10 years, on the grounds the currency is undervalued and therefore provides a subsidy for Chinese manufacturers shipping goods overseas.
amj/tr
For more information and to contact AFX: www.afxnews.com and
www.afxpress.com
LOAD-DATE: November 29, 2004
Copyright 2004 AFX News Limited
AFX.COM
November 29, 2004 Monday
SECTION: ECONOMIC NEWS; MARKETS
LENGTH: 358 words
HEADLINE: China's Premier Wen Jiabao questions US currency management - report
DATELINE: BEIJING
BODY:
Premier Wen Jiabao launched an indirect attack on the US yesterday for failing to halt the slide in the dollar, while vowing not to revalue the yuan under pressure, the South China Morning Post reported.
The Hong Kong-based newspaper said Wen questioned the US government's management of its currency.
"China is a responsible country. We have ensured that the exchange rate of the renminbi remained stable during the 1997 Asian financial turmoil and, by doing so, contributed to the resolution of the crisis," Wen was quoted as saying on the sidelines of the Association of Southeast Asian Nations summit in the Laotian capital of Vientiane.
"Today, we have to ask a question. The US dollar is depreciating and there is no attempt to manage it. What is the reason for this? Shouldn't the relevant parties take measures?"
Wen described the revaluation of the yuan as a major economic issue that should not be carried out under pressure.
"(Revaluation) should be introduced when the timing is right. If society continues its rampant speculative activities on the yuan, like it is now, it will be impossible for us to introduce the measure," Wen said.
Changes to the exchange rate require certain conditions, he said.
"The most important is to have a stable macroeconomic environment, a healthy and complete market mechanism and a healthy financial system," he said.
"We must consider the effect on China's own economy and society, and must consider its impact on the region and the world."
Wen's remarks were echoed at home by central bank vice-governor Li Ruogu, who said China had no timetable for the reform of its currency exchange mechanism because it had no idea how long such a reform would take.
China's major trading partners are pressuring the government to revalue the yuan, which has been pegged to the US dollar for the last 10 years, on the grounds the currency is undervalued and therefore provides a subsidy for Chinese manufacturers shipping goods overseas.
amj/tr
For more information and to contact AFX: www.afxnews.com and
www.afxpress.com
LOAD-DATE: November 29, 2004
posted by Eastlaw at 2:16 AM
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