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Yuan facing pressure to rise - vice-minister
Thu, Jan 28, 2010
Reuters

BEIJING, Jan 28 (Reuters) - China's yuan is facing increasing pressure to rise, and expectations of appreciation could hurt exports, a Commerce Ministry official said.

"International pressure for the yuan to rise is growing; there are strong expectations for yuan appreciation,"Vice-Minister for Commerce Zhong Shan said in a statement on the ministry's website on Thursday.

Zhong said expectations for a stronger yuan were one of the factors that could weigh on China's exports in 2010, in addition to uncertainties about global economic recovery and trade disputes.

The Commerce Ministry has previously said a stable yuan is beneficial for China and for the global economy.

Zhong said it would be "increasingly difficult" for Beijing to maintain policy consistency and stability in 2010 because the government would have to adjust its stimulus policies, but did not elaborate.

The government has repeatedly vowed consistency and stability in applying its "appropriately loose monetary and active fiscal policies", but has begun to gradually tighten monetary conditions with the economy growing at a near double-digit pace.

Zhong said the Commerce Ministry was targeting modest growth in exports and imports in 2010, and a 16 percent rise in domestic retail sales.

He said outbound foreign direct investment target for 2010 was $46 billion, up 6.2 percent from $43.3 billion in 2009.

 

 

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