China's Wen: Yuan to Stay Stable

In a retort to critics of his nation's exchange rate controls, Chinese Premier Wen Jiabao says his nation will keep the yuan 'basically stable.'

Author:: TSC Staff
Publish date:: Mar 14, 2010 2:28 PM EDT

BEIJING (TheStreet) -- China's premier said Sunday that the nation will keep its currency "basically stable," according to published media reports.

The statement was a clear retort to the U.S. and other nations that have pressed Beijing to loosen its exchange rate controls. Critics say the controls keep China's currency, known as the yuan or renminbi, artificially undervalued, giving the nation's exports an unfair advantage.

"First of all, I don't think the renminbi is undervalued," Premier Wen Jiabao was quoted saying at a news conference by the

Associated Press

. "We oppose all countries engaging in mutual finger-pointing or taking strong measures to force other nations to appreciate their currencies."

"We will continue to reform the renminbi exchange rate regime and will keep the renminbi basically stable at an appropriate and balanced level," Wen was also quoted as saying.

Beijing kept the value of the yuan tied to the dollar for decades, but the government ended that link in 2005 and allowed the currency to appreciate about 20% through late 2008, the

noted. Since then, China has held its currency steady against the greenback.

This article was written by a staff member of TheStreet.com.