Berlin: more flexibility for Chinese currency

3rd December 2004, Comments 0 comments

3 December 2004 , BERLIN - Germany is seeking more flexibility for China's currency, the yuan, which remains pegged to the US dollar, a senior official said on Friday on the eve of a visit by Chancellor Gerhard Schroeder to Beijing. "It would certainly be desirable if there was more flexibility in the Asian region," said the official, speaking on condition of anonymity, after being asked if Schroeder would raise European concerns over the yuan at talks with Chinese leaders. The official added that Berlin b

3 December 2004

BERLIN - Germany is seeking more flexibility for China's currency, the yuan, which remains pegged to the US dollar, a senior official said on Friday on the eve of a visit by Chancellor Gerhard Schroeder to Beijing.

"It would certainly be desirable if there was more flexibility in the Asian region," said the official, speaking on condition of anonymity, after being asked if Schroeder would raise European concerns over the yuan at talks with Chinese leaders.

The official added that Berlin believed politicians should not be in the foreground on foreign exchange issues which were better dealt with by markets and central banks.

Chinese Prime Minister Wen Jiabao has repeatedly said that Beijing has no plans to change its policy of pegging the yuan at 8.3 to the dollar.

The fixed-rate yuan has helped the euro rise to record highs against the dollar this year.
European officials believe freeing up the yuan and it allowing it to rise in value would take pressure of the strong euro which is causing concern because it makes eurozone exports more expensive.

DPA

Subject: German news

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