March 15, 2011China says forex policy not on G20 seminar agenda
BEIJING : China said Tuesday its foreign exchange rate policy - long criticised by trade partners - will not be on the agenda of a G20 seminar to be held in the eastern Chinese city of Nanjing this month.
Foreign ministry spokeswoman Jiang Yu said the "unofficial and academic" seminar on March 31 would discuss international monetary reform.
Beijing is under pressure from major trade partners, including the United States and Europe, to loosen its grip on the yuan and make good on its pledge last June to allow the currency to trade more freely against the dollar.
"The renminbi exchange rate is not on the agenda," Jiang told reporters at a regular briefing, using China's official name for its currency.
The one-day meeting of finance ministers, central bankers and other officials from the Group of 20 developed and emerging economies will be opened by French President Nicolas Sarkozy.
Critics claim the yuan is grossly undervalued and gives Chinese exporters an unfair trade advantage by making their good cheaper on world markets.
China has repeatedly rejected calls for a faster appreciation in the currency, with the central bank governor Zhou Xiaochuan saying Friday that policymakers would stick to a "gradual approach in exchange rate reform".
Beijing believes a sudden adjustment in the value of the currency would hurt the country's vast manufacturing sector, potentially triggering the loss of millions of jobs and causing social unrest.
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1116646/1/.html
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