Chinese Currency To Remain Stable : Planet Money China premier said Sunday the country plans to keep its currency stable despite growing international pressure to let it appreciate.
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Chinese Currency To Remain Stable

In an interview published by the Xinhua news agency on Sunday, Wen Jiabao, China's premier, pushed back on mounting international pressure to revalue China's currency.

In recent weeks, the US and the European Union and also developing nations such as Brazil and Russia have joined together in pushing China to appreciate its currency, which would have the effect of boosting foreign imports to China and stemming the explosive Chinese export market.

Mr. Wen said some of the demands for China to let its currency appreciate were an effort to contain the country's development. He repeated his oft-made assertion that a stable renminbi has helped fuel the global economic recovery.

"We will not yield to any pressure of any form forcing us to appreciate. As I have told my foreign friends, on one hand, you are asking for the renminbi to appreciate, and on the other hand, you are taking all kinds of protectionist measures," he said.

China dropped its formal dollar peg in 2005 and has since allowed the renminbi to trade within a narrow band.

Since the middle of last year it has operated a de facto peg. This has meant that the renminbi has depreciated about 9 percent against the currencies of its main trading partners since early this year, while the Chinese economy has rebounded quicker than any other major economy.