Banking News
- Central banker urges patience on reforms
Date: 25-Jun-2007 Sources: (Xinhua Online)
CENTRAL banker Wu Xiaoling reaffirmed Friday the government's policy of keeping the yuan stable, a day after U.S. Treasury Secretary Henry Paulson said he'll seek 'more creative?ways to press for increased flexibility.
The world must be 'patient?over the pace of the nation's reforms, People's Bank of China Deputy Governor Wu said at a Beijing forum marking the 10th anniversary of the Asian financial crisis. China will move toward a demand-driven exchange rate, the central banker said.
Paulson told lawmakers in testimony Thursday that he was frustrated by the pace of change in China. He is trying to coax the Chinese Government into loosening control of the yuan amid calls in Congress for trade sanctions.
China's record trade surpluses and claims that Chinese products endanger consumers have exacerbated trade tensions with the United States. Some lawmakers say the yuan is kept weak to make China's exports cheap.
The yuan has increased by 8.6 percent against the U.S. dollar since a fixed exchange rate ended in July 2005.
China wants to curb 'blind?export growth and boost incomes to increase domestic consumption, Wu said. The structural problems of the Chinese economy won't be solved by exchange-rate changes alone, the central banker said.
Li Yang, a former policy adviser to the Chinese central bank, Thursday called for China to let the yuan move more freely to aid management of the nation's US$1.2 trillion of foreign exchange reserves.
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