Government and Policy

China will reform currency at own pace despite pressure

By Ding Qingfen (chinadaily.com.cn)
Updated: 2010-06-27 03:38

Toronto -?China will not bow to the pressure from worldwide on Renminbi issue, and the nation's foreign exchange reform will be made only based on China's own need for transformation of economic restructure, said Ma Xin, director general of the Department of International Cooperation with the National Development and Reform Commission.

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Chinese government announced last weekend to enhance the Renminbi exchange rate flexibility, which ended a fixed peg to the US dollar since July 2008. But the worldwide represented by the US is still unsatisfied and the American senators recently urged the Obama Administration to punish China and its exporters.

"China's move is welcomed by the worldwide, and we have not felt any difference on the pressure of currency issue from the group of G20 nations," said Zhang Tao, director general of International Department of the People's Bank of China.

"I don't think we will take any change on pace, depth and scope of the Renminbi exchange rate reform," he added.

Last week, the yuan has gained 0.53 percent, the most since December 2008, but Nobel laureate Paul Krugman said China's move was an "exercise in bad faith" aimed to fend off international pressure at the G20 Summit.

"The foreign exchange reform could help control inflation and avoid asset bubbles," said Zhang.