A Chinese trade official said on that the time has not yet come for China to allow the yuan to trade more flexibly and warned the United States not to pressure China too much on the issue.
Yu Jianlong, Director General of the economic information department for the China Council for the Promotion of International Trade of the People’s Republic of China was speaking at a conference in Chicago.
“The time has not come for us to appreciate the value of the Chinese currency,” Yu said.
“We are on the way,” in the process of broad economic reforms, he said. “Don’t push too hard,” Yu added, referring to reports that the US is demanding currency reform.
“I won’t let the cat out of the bag right now,” he said, referring to the timing of any currency move.
The Chinese yuan is pegged near 8.28 yuan to the dollar currently. Currency market speculation that China may move to allow the yuan to trade more freely is a major catalyst in foreign exchange markets.
He said, “Reform will take place in two steps.”
In the first phase the yuan would be attached to a basket of currencies including the US dollar, the Japanese yen and the euro, he said. The second step would be contingent on the development and reform of commercial banking in China, he said. (Reuters)