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China keeps yuan stable, uneasy about US dollar
(minister)
Updated: 2010-01-07 21:59
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Chinese Commerce minister Chen Deming (L) meets with Turkish State Minister for Foreign Trade Zafer Caglayan in Ankara, on Jan 7. [Xinhua] |
China's Commerce minister Chen Deming said in Ankara Thursday the stability of the Chinese currency contributes to the recovery of the world economy while voicing concerns over the strength of the US dollar.
"The Chinese government has stated on many occasions it will keep the exchange rate of the yuan, or renminbi, basically stable," said Chen during a visit to the Turkish capital Ankara, adding "We feel that is an important support and contribution for the world economy, which is undergoing a crucial period of recovering."
An unstable currency of China, whose trade volume accounts for about 10 percent of the world's total, would have a great impact on the global trade, Chen told a joint press conference with Turkish State Minister for Foreign Trade Zafer Caglayan.
Chen said China will press ahead with reforms for a controllable, freely floating renminbi exchange rate, while reiterating China's concerns about the value of the US dollar.
"Recently we're more concerned about whether the US dollar can maintain its stability and strength, as China holds a large amount of US dollar-denominated bonds," said Chen.
China is the biggest holder of US Treasury securities, with its holdings totaling US$798.9 billion in value as of the end of October 2009, according to US Treasury data.
