Yuan hits new high against US dollar

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Source: CCTV.com | 12-13-2007 13:37

China's currency, the yuan, has hit a new high against the US dollar and its appreciation is a major topic at the ongoing economic dialogue.

You can now buy more US dollars with your Chinese yuan.

China's central bank let the yuan rise as high as 7.36 per dollar on Wednesday.

This is the strongest level since the currency was unpegged from the dollar in July 2005.

The yuan has gained over ten per cent against the dollar in total since then.

Some critics say China's currency is undervalued, giving Chinese exporters an unfair price advantage and causing a massive trade imbalance between China and the US.

On the sidelines of the China-US strategic economic dialogue, Chinese commerce officials say the country is not against yuan appreciation, but warn a rapid rise could create problems.

Vice Commerce Minister Chen Deming said, "If the Renminbi were to strengthen too precipitously and impact the Chinese economy, there would be serious repercussions on global economies. This would not be good news for anyone."

The vice minister says it is irresponsible to think the faster the Renminbi goes up, the better.

He adds the appreciation of the yuan will not help ease the trade imbalance between China and the US.

Chen also expresses concern over the continued depreciation of US dollars.

He says a weak dollar can drive up oil and gold prices, and reduce the assets of the countries or companies holding the currency.

He hopes the US economy and the US dollar will become stronger.

Editor:Zhang Ning