Mon, Jun 28, 2004 - Page 10 News List

China committed to yuan value: Wu Yi

BLOOMBERG

China is committed to improving the mechanism for determining the value of its currency, the yuan, and maintaining it at a level conducive to economic stability domestically and internationally, Vice Premier Wu Yi (吳儀) said.

China is keeping a "a single managed floating rate system based on market demand and supply" that is in line with the country's current stage of economic development, Wu said at the Pacific Basin Economic Council's International General Meeting in Beijing.

The current value of the yuan is acceptable to the country's businesses, she said.

reforms

"China will move on with its financial reforms, and work with the international financial community to perfect its yuan exchange rate and eventually realize convertibility," Wu said.

China has fixed its currency, the yuan, at about 8.3 to the US dollar since 1995. US President George W. Bush's administration has pressed China over the past year to end the yuan's peg.

US industry groups such as the National Association of Manufacturers estimate the yuan is about 40 percent undervalued and say it would appreciate if floated.

Wu said China's stability and prosperity is key to the peace and prosperity of Asia. She repeated China's goal of quadrupling growth to US$4 trillion, or US$3,000 per person, by 2020.

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