China eyes basically steady yuan in 2010: minister

BEIJING | Wed Mar 3, 2010 3:51am EST

BEIJING (Reuters) - China will keep the yuan's exchange rate basically steady this year, Commerce Minister Chen Deming said on Wednesday.

Speaking to reporters on the sidelines of the opening session of the annual Chinese People's Political Consultative Conference, Chen said he expected 2010 to be a better year for Chinese exports than 2009, when they fell 16 percent.

The yuan has been rooted near 6.83 per dollar since mid-2008 to help China's exporters weather the global downturn.

(Reporting by Beijing newsroom, Writing by Alan Wheatley; Editing by Ken Wills)
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Comments (1)
Kina wrote:
Everything China does first has to pass the analyses of risk to State power. Nothing is more important to them and nothing managed more carefully and ruthlessly.

Growth is getting out of control, too much money is floating around the economy and China is beginning to feel it is losing control of its own backyard.

It wont want to add to inflation or bubbles any further and will looking to actively burst them or wind them back. It has to consider the vast millions not in on the economic ride being priced out of basic necessities.

Thus it needs to maintain and increase employment thus keep exports cheap…thus the Yuan will stay put for awhile.

It may increase basic wages as a way to push up costs.

Mar 03, 2010 4:20am EST  --  Report as abuse
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