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  • Jan 31st, 2010
  • Comments Off on China ready to move on yuan when world exits stimulus
China will be "ready" to deal with the currency exchange rate issue when global partners are ready to end their stimulus packages, the deputy head of China's central bank said Saturday. Zhu Min said that for China, maintaining a stable exchange rate for its currency is "a stimulus package" on its own.

He pointed out that Beijing is committed to the G20 Pittsburgh agreement that countries will co-ordinate exit strategies from their respective massive stimulus packages adopted to combat the global downturn. "If global is ready to do exit strategy, China is ready... including various issues - liquidity issue, exchange issue," he told the Davos forum. He insisted that China's move to keep the yuan stable, "when crisis comes, is good for China and also good for the world."

China has been under fire for keeping its yuan currency weak against the dollar, a strategy which critics say is aimed at keeping Chinese exports competitive. French President Nicolas Sarkozy, in the keynote opening speech of the Davos meeting Wednesday, made a veiled attack on China over the issue, saying festering trade imbalances were harming economic recovery.

Copyright Agence France-Presse, 2010


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