Banking News
- China says rapid appreciation of Renminbi not good for the world
Date: 12-Dec-2007 Sources: (People's Daily)
Chinese Vice Commerce Minister Chen Deming said here Wednesday that if the Renminbi, China's currency, appreciated too rapidly, it would cause fluctuations in the Chinese economy that would not be positive for the world.
Chen made the remarks at a news briefing on the sideline of the third China-U.S. Strategic Economic Dialogue, which opened here Wednesday.
He said China was not against Renminbi appreciation but did not want it to occur too rapidly, as this would not suit China's conditions. 'Some people in the world hope the Renminbi would appreciate as fast as possible; these are irresponsible remarks,' Chen said.
The Renminbi hit a new high against the U.S. dollar Wednesday, when its central parity rate stood at 7.3647 yuan per dollar, gaining 150 basis points from Tuesday's reference rate of 7.3797.
Chen said the appreciation of the Chinese currency would not help ease the trade imbalance between China and the United States.
The Renminbi has appreciated about 11 percent since China de-pegged it from the U.S. dollar in July 2005, but the trade surplus has not shrunk. The latest figures from Chinese Customs show that between January and November, China-U.S. trade expanded 15.7 percent from the same period of last year, to 276.21 billion U.S. dollars.
Chen also expressed concern over the continued depreciation of the U.S. dollar, which he said would 'drive up oil and gold prices and reduce the assets of the countries or companies that hold the currency,' Chen said.
'So I hope the U.S. economy could be stronger, as well as the U.S. dollar,' he added.
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