China: Yuan exchange rate is a sovereign issue and not on G20 agenda   2010-06-19 14:22:48 FeedbackRSS

BEIJING, June 19 (Xinhuanet) -- China has told the rest of the world not to meddle with the way it manages its currency, calling the exchange rate a sovereign matter for China alone to decide. This came as officials briefed reporters Friday on China's position ahead of the Group of 20 meeting.

As the G20 draws near, financial markets are watching for any statements about China's policy of pegging the yuan to the dollar after Washington stepped up its criticism in recent days.

Chinese officials brushed aside the idea of letting the Renminbi rise in value.

Qin Gang, Foreign Ministry Spokesman said, "The international community should increase co-operation in order to strengthen the world's economic recovery. This should be the main agenda of the Toronto summit. Therefore we consider it inappropriate to discuss the renminbi's exchange rate at the G20 summit."

Officials say the Renminbi exchange rate has never been a topic at previous G20 summits, and it shouldn't be a topic this year.

They said despite signs of recovery, the world economy still faces multiple uncertainties. Foremost among these was the euro zone's debt morass.

China maintains it has worked hard to keep its currency stable through the financial crisis, which was a major benefit to the international community, and that it is opposed to others "politicizing the issue" or pressuring China to address it.

Zhang Tao, Director International Dept., PBOC, said, "The Chinese government will judge, research and make decisions on currency policy based on the situation of domestic and international factors."

Some Western economists contend the Renminbi is undervalued by as much as 40 percent against the dollar.

China did allow its currency to rise in value from July 2005 until the summer of 2008 - by about 20 percent. Since then Beijing has kept the yuan steady around 6.8 yuan to the dollar.


Editor: Zhang Xiang
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