PBOC: We can't rely on yuan alone to fix economy
(Reuters)Updated: 2006-12-12 11:06
China will make the yuan currency more flexible but adjustment of the
currency alone cannot correct imbalances in the world's fourth largest economy,
an assistant central bank governor said on Monday.
 A Chinese man pulls some yuan notes from his wallet. [AFP]  |
People's Bank of China Assistant Governor Yi Gang said China needed a
group of policies to adjust the economic imbalances, including stimulating
domestic demand, protecting the environment and improving the social security
system.
"We can't rely on adjustment of one factor, say the yuan appreciation, to address the economic imbalances," Yi told a forum.
"We will keep the yuan exchange rate basically stable at a reasonable and balanced level and increase flexibility in the exchange rate system."
The official's comments come ahead of a visit to Beijing this week by a high-powered U.S. delegation led by Treasury Secretary Henry Paulson, who is expected to encourage China to keep liberalising its financial and product markets.
Monday marked the 5th anniversary of China's entry to the World Trade
Organisation, which led to the wider opening of its banking and other sectors to
foreign competition.
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