|
BEIJING, Apr 26 (AFP): China will not agree to any major yuan revaluation in the short-term, preferring its gradualist policy despite G7 calls led by the United States for more radical forex reform, analysts say.
"It looks like China's reaction in the short-term is imperceptible," Stephen Green, a Shanghai-based economist for Standard and Charter, told the news agency.
"There has been basically no movement in the yuan-dollar rate; in fact it looks like it has moved slightly the other way," he said, noting the Chinese unit has even eased since a Group of Seven Washington meeting at the weekend.
In one of its most forceful statements on China, the G7 industrialised nations urged Beijing to allow greater flexibility in its tightly managed exchange rate regime.
"In emerging Asia, particularly China, greater flexibility in exchange rates is critical to allow necessary appreciations," as part of a wider effort to resolve outstanding global imbalances, a G7 statement said.
The G7 call came after Chinese President Hu Jintao deflected US pressures to allow the yuan to appreciate during last week's visit to Washington, while saying China would gradually establish a more flexible exchange rate system.
The United States, which chalked up a 202 billion dollar trade deficit with China last year, has cited the yuan exchange rate as a key reason, saying the currency is undervalued by up to 40 per cent.
Green said China was unlikely to buckle under the growing pressure, sticking with its measured approach which would see the yuan rise in value to no more than 7.80 yuan to the dollar by December. It currently trades around 8.02.
|