China’s Bank Chief Says Currency Is Unlikely to Rise |
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March 7, 2010
China’s central bank governor indicated Saturday that the government was unlikely to detach the value of China’s currency from that of the dollar anytime soon, echoing Prime Minister Wen Jiabao’s statement on Friday that exchange rates would remain “basically stable” for now.
China’s central bank governor indicated Saturday that the government was unlikely to detach the value of China’s currency from that of the dollar anytime soon, echoing Prime Minister Wen Jiabao’s statement on Friday that exchange rates would remain “basically stable” for now.
Many Western economists and leaders, including President Obama, have called for China to let its currency, the renminbi, appreciate against the dollar, arguing that an artificially cheap renminbi increases Chinese exports at the expense of the rest of the world’s economies.
At a Saturday news conference, the central bank head, Zhou Xiaochuan, said China should be “very cautious” about revaluing its currency, also known as the yuan, as long as major economies remained mired in slow growth.
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