No moves to correct yuan valuation: China

Zhong Shan, vice commerce minister, PRC

Birmingham, England: Visiting Chinese vice commerce minister, Zhong Shan, has said there are no moves to correct valuation of national currency, the Yuan, as his government was of the view that it should remain "basically stable." However, he qualified his statement somewhat with an ambiguous assertion that the currency could be given a wider space to move in the forex markets provided conditions were right.

Speaking to media sources at a trade fair in Birmingham, Zhong said movement in a wider band for the yuan would depend on China's economic development and broader economic conditions.

"We can't allow too-large moves" [in the yuan], he said.

Earlier, speaking at a press conference, Zhong said maintaining stability in the Chinese yuan was vitally important to ensure a timely global economic recovery.

"We are indeed facing great pressure from the international community to appreciate the yuan," Zhong said.

"We need to maintain the [yuan] at a stable and equilibrium level, which I believe will be of benefit to China and to the world economy," he added.