BEIJING: China defended its foreign exchange rate policy on Thursday, one day after US Federal Reserve Chairman Ben Bernanke urged Beijing to let the value of its yuan currency rise.
Foreign ministry spokesman Ma Zhaoxu told a regular news briefing that Beijing's controls on the yuan were in the country's "long-term interest", while pledging it would continue to push forward reform of the currency regime.
Bernanke on Wednesday issued a rare criticism of another country's financial policies, calling this week's interest rate hike by China's central bank -- aimed at fighting high inflation -- a "surprising" way to curb prices.
Bernanke instead urged Beijing to allow a rise in the value of the yuan, known officially as the renminbi.
"The renminbi is undervalued," Bernanke told a hearing of the House of Representatives budget committee.
"It would be both in our interest and in the Chinese interest for them to raise the value of their currency. And it would help them with their inflation problem," he said.
Ma did not mention Bernanke in the briefing but his comments appeared aimed at the US Fed chief's remarks.
"Facts have proven that the renminbi exchange rate is not the major cause of the trade imbalance between China and the United States," Ma said.
"We hope certain individuals will look at this issue objectively."
The US has raised the pressure on China to float its currency to help address the yawning US trade deficit with what is now the world's second largest economy.
Washington lawmakers have accused China of deliberately holding the yuan's value artificially low to promote its exports, not only to the US but to other countries.
Comments
Comments are closed for this article.