No plan to dump US dollars: China
Tuesday, 14 August 2007
BEIJING, Aug 13 (PTI): China's central bank has assured the international community that it has no plans to dump the US dollars in its massive foreign reserves in response to Washington's relentless pressure to revaluate the Chinese currency.
The US dollar plays an important role in the global monetary system and dollar assets are an important part of China's foreign exchange reserve, the People's Bank of China (PBOC) said yesterday.
In response to a media report saying that "China threatens to trigger US dollar crash", the PBOC said that China is a responsible investor in the international financial market.
On August 8, UK's 'Daily Telegraph' reported that two senior Chinese officials warned in an interview that Beijing may use its 1.33 trillion of foreign reserves as a bargaining chip in talks with the US on issues such as yuan revaluation.
The newspaper said the remarks were in response to the passage of a bill by the US Senate Finance Committee last month that would impose higher trade tariffs on China-made goods if Beijing refused to revalue the yuan at a faster pace.
China has been asserting that it would carry out the exchange rate reform in an independent, controllable and gradual way to maintain the yuan's strength.
China's major trade partners, especially the United States, are pressing Beijing to quickly revamp its exchange rate mechanism.
The United States argues that the Chinese yuan is artificially kept low, giving Chinese exporters an "unfair" trade advantage in the American market, resulting in loss of local jobs.
The US dollar plays an important role in the global monetary system and dollar assets are an important part of China's foreign exchange reserve, the People's Bank of China (PBOC) said yesterday.
In response to a media report saying that "China threatens to trigger US dollar crash", the PBOC said that China is a responsible investor in the international financial market.
On August 8, UK's 'Daily Telegraph' reported that two senior Chinese officials warned in an interview that Beijing may use its 1.33 trillion of foreign reserves as a bargaining chip in talks with the US on issues such as yuan revaluation.
The newspaper said the remarks were in response to the passage of a bill by the US Senate Finance Committee last month that would impose higher trade tariffs on China-made goods if Beijing refused to revalue the yuan at a faster pace.
China has been asserting that it would carry out the exchange rate reform in an independent, controllable and gradual way to maintain the yuan's strength.
China's major trade partners, especially the United States, are pressing Beijing to quickly revamp its exchange rate mechanism.
The United States argues that the Chinese yuan is artificially kept low, giving Chinese exporters an "unfair" trade advantage in the American market, resulting in loss of local jobs.