China urges major countries to stabilize currency

December 5th, 2008 - 4:57 pm ICT by IANS  

Beijing, Dec 5 (Xinhua) China Friday urged major countries to stabilize their currencies for a stable international financial environment. Addressing a press conference held here Friday after the fifth US-China Strategic Economic Dialogue (SED), Zhu Guangyao, assistant minister of finance, said: “A stable external economic environment is very important for those developing countries affected by the global financial crisis”.

Though currency issue was not on the agenda of the meet, it aroused great concern during the deliberations in the backdrop of the recent decline of Chinese currency RMB in value against the US dollar.

The yuan fell as low as 6.8845 to US dollar over-the-counter Thursday morning, declining by the 0.5 percent daily limit.

Zhu stressed that China will reform the floating exchange rate policy, which is based on market demand and adjusted and managed according to a bucket of currencies.

The two-day fifth SED was concluded here Friday morning. The two sides reached consensus on a number of critical issues of the two economies.

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