Monday, January 17, 2011

Chinese President Visit to the US, dispute over Currency matter is still going on

To control the International Currency System through US dollar is a "creation of the precedent", said Chinese President Hu Jintao in a statement.
Mr. Hu Jintao also said that China was moving forward to replace with its own currency “Yuan” but accepted that would be “quite a long procedure”.
The remarks were published to two US newspapers come in front of state visit by the Chinese President to Washington this week. They intimate ongoing apprehensions over currency matter between the two countries.
In an exceptional interview published in the Washington Post and Wall Street Journal, Mr Hu also repeated condemnation of a decision by the US Federal Reserve to insert $600 billion into the economy, which some argue will decline the dollar at the cost of other countries' exports.
Chinese President said that the monetary policy of the US has a main shock for global liquidity and capital flows, hence the liquidity of the US dollar should be reserved at a sensible and constant stage.
He opposed with the ideas that letting the Yuan appreciate in value would help China to tackle prices rises.
Beijing has earlier come under force over its currency from the US, which has blamed China of purportedly influencing the Yuan to help enhance Chinese exports.
In spite of differences of the current system, Mr Hu said he thought it would be a lengthy period before the Yuan or Renminbi (RMB) was established as a global currency.
He said China has made imperative contribution to the world economy in connection of complete economic productivity and trade, and the RMB has played a vital role in the world economic growth.
"But nominating the RMB as an international currency will be quite a long process.

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