China's Wen: Can't Blame China For Forex Fluctuations
29.01.09, 15:51 Uhr
BERLIN -(Dow Jones)- China can't be blamed for current fluctuations in currency markets, Chinese Prime Minister Wen Jiabao said Thursday after bilateral talks with German Chancellor Angela Merkel, adding that China wants to keep its currency at a "reasonable and balanced level." (Foto: ddp)
"There are always very strong fluctuations of different currencies' exchange rates in the world, like a roller-coaster ride, but the blame for this is not on the side of China," Wen said.
China's exchange-rate policy "is orientated toward market requirements," said Wen, adding that the yuan is a flexible currency and its value is linked to a basket of currencies.
U.S. Treasury Secretary Tim Geithner told lawmakers in written testimony that President Barack Obama, "backed by the conclusions of a broad range of economists - believes that China is manipulating its currency."
Though the U.S. has long pushed China to move to a market-based system for managing the yuan, it has resisted officially branding Beijing as a manipulator.
Merkel and Wen Thursday expressed concern about the state of the global economy and said they are willing to work together to overcome the global economic and financial crisis.
Merkel said she and Wen agreed that protectionism would be the wrong response.
Wen also said he aims to keep trade levels with Germany this year at the same level reached last year and stressed that China doesn't aim for any trade surplus.
DJG/mrf
