China minister says yuan set by need for stability

* Commerce minister says economy must “stabilise first”

* Denies China manipulating yuan

By Tim Cocks

MONROVIA, April 23 (BestGrowthStock) – China’s decision on whether
or not to revalue the yuan will be determined by its own
economic situation and the need for stability, not politics,
Vice Commerce Minister Fu Ziying told Reuters on Friday.

Beijing has pegged its currency against the dollar for the
last 21 months, despite criticism from Washington and elsewhere
that it is holding down its appreciation in order to boost its

“China must do things according to its own economic
situation, its own road map. The financial crisis has brought
up lots of uncertainties for the Chinese economy so we have to
stabilise first,” Fu told Reuters while on a trip to Liberia.

Markets are expecting some move on the peg but the timing
and form of the change are unknown.

“It’s a hot topic that has been over hyped,” Fu told
journalists earlier. “I don’t know since when many congressmen
have all become experts on this issue … Our friends should
not be led by the nose by politicians and congressmen.”

China is under mounting international pressure to let the
yuan resume its appreciation against the dollar after a pause
of close to two years. U.S. Congress members are pressing for
legislation to allow retaliatory duties on imports from China
if Beijing fails to alter its currency policy.

Western leaders complain the currency is undervalued,
giving China an unfair edge in export markets and skewing
global trade. Fu dismissed this as scapegoating and said China
was in no position to manipulate the yuan like this.

“I don’t think it’s possible for us to manipulate our
currency to achieve our economic development while resolving
the trade imbalances of other countries,” he said.

Raising the value of the yuan would cut the cost of China’s
imports of dollar-denominated commodities such as oil, copper
and iron ore, but would make Chinese exports dearer.


(Editing by Andrew Hay)

China minister says yuan set by need for stability