China comfortable with 3-5% annual yuan rise: Report
Yuan has appreciated by about 2% against the US dollar since Beijing pledged in June to allow it to trade more freely against the greenback.
By Agencies |
BEIJING: China is comfortable with a three to five percent annual appreciation of the yuan, a central bank adviser said on Friday, as Beijing faces international pressure to let the value of its currency rise.
The currency could appreciate further if the market determines it should in the long term, People's Bank of China advisor Li Daokui said, according to Dow Jones Newswires.
"Based on experience, our economy can handle a three percent to five percent appreciation of the yuan's nominal exchange rate," Li was quoted as saying on the sidelines of a financial forum in Beijing.
The Chinese currency has appreciated by about two percent against the US dollar since Beijing pledged in June to allow it to trade more freely against the greenback.
Li reiterated Beijing's position that any adjustment to the yuan's exchange rate should be based on domestic factors, and not external pressure. He added that such adjustments should also be gradual and controlled.
While critics in the United States and Europe have argued that China artificially keeps the yuan's value low to give exporters an edge, Beijing has said any sudden rise would destroy Chinese firms and cause mass unemployment.
Li also said he believes China's economy, which has been powered by strong exports over the past decade, will significantly reduce its reliance on external demand in less than five years.
"The weighting of trade surplus in China's gross domestic product has already declined considerably. It used to be near 10 percent and it's expected to fall to four percent to five percent this year," he was quoted as saying.
The currency could appreciate further if the market determines it should in the long term, People's Bank of China advisor Li Daokui said, according to Dow Jones Newswires.
"Based on experience, our economy can handle a three percent to five percent appreciation of the yuan's nominal exchange rate," Li was quoted as saying on the sidelines of a financial forum in Beijing.
The Chinese currency has appreciated by about two percent against the US dollar since Beijing pledged in June to allow it to trade more freely against the greenback.
Li reiterated Beijing's position that any adjustment to the yuan's exchange rate should be based on domestic factors, and not external pressure. He added that such adjustments should also be gradual and controlled.
While critics in the United States and Europe have argued that China artificially keeps the yuan's value low to give exporters an edge, Beijing has said any sudden rise would destroy Chinese firms and cause mass unemployment.
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Li also said he believes China's economy, which has been powered by strong exports over the past decade, will significantly reduce its reliance on external demand in less than five years.
"The weighting of trade surplus in China's gross domestic product has already declined considerably. It used to be near 10 percent and it's expected to fall to four percent to five percent this year," he was quoted as saying.
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