China wants US reassurance over dollar

[Commonground]

2010-03-14

BEIJING: China's premier expressed concern about the U.S. dollar and called on Washington on Sunday to take "concrete steps" to reassure Beijing about the safety of its huge Treasury bond holdings.

"Any fluctuation in the value of the U.S. currency is a big concern for us," Premier Wen Jiabao said at a news conference.

"We cannot afford any mistake, how slight it is, when running our financial assets," he said. "I would like the United States to take concrete steps to reassure investors."

China has pressed Washington to control its yawning budget deficit and prevent inflation that would erode the value of the dollar and China's holdings.

The premier said Treasury values were a matter of the "national credibility" of the United States.

http://thehimalayantimes.com/fullNe...ants+US+reassurance+over+dollar&NewsID=232955

 

[Commonground]

Re: China wants US reassurance over dollar

Wen Rebuffs Yuan Calls, Is ‘Worried’ About Dollar (Update1)

March 14 (Bloomberg) -- Chinese Premier Wen Jiabao rebuffed calls for the yuan to appreciate and sought assurances that the U.S. will protect the value of China’s dollar assets.
“I don’t think the yuan is undervalued,” Wen said at a press conference in Beijing marking the end of China’s annual parliamentary meetings. Dollar volatility is a “big” concern and “I’m still worried” about China’s U.S. currency holdings, he said.



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Sovereign-debt problems and high unemployment around the world could send the global economy into a second, or “double dip” downturn, the premier said. In China, inflation, combined with wide income gaps and official corruption, could lead to social instability “and even affect the government’s hold on power.”



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http://www.bloomberg.com/apps/news?pid=20601087&sid=acfksEqz2TGg&pos=1

 

[Commonground]

Re: China wants US reassurance over dollar

China turns a deaf ear to currency appreciation
March 14, 2010 2:02 PM

SHANGHAI ? Premier Wen Jiabao wound up China?s most important political event of the year with a clear declaration against appreciation of the yuan.

?I don?t think the yuan is undervalued,? the premier said at his annual news conference.

He told reporters the growing clamour to unpeg the Chinese currency, which has been tied to the U.S. dollar since 2008, is a form of protectionism that China opposes.

?Some countries? moves to shore up their exports are understandable,? he said. ?But what I cannot understand is them depreciating their own currencies while telling other countries to appreciate theirs for the sole purpose of increasing their own exports.

?I think it is protectionism,? the premier said.

Wen added: ?Our efforts to keep a stable yuan made an important contribution to global recovery.?

China, which holds about $895 billion in U.S. debt, is still ?a bit concerned? about how safe its investment in Treasury Bonds and other securities is, according to Wen.

He urged the U.S. to take ?credible steps to reassure investors.?

Wen?s news conference closing the 10-day meeting of the National People?s Congress is one of the very few times each year the Chinese leadership deigns to answer question about its policies and plans.

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http://www.leaderpost.com/business/China+turns+deaf+currency+appreciation/2682184/story.html

 

[Commonground]

Re: China wants US reassurance over dollar

China Takes Aim at U.S. on Economy
<small>MARCH 14, 2010, 2:54 P.M. ET</small>



BEIJING?Premier Wen Jiabao aimed sharp words at Washington on Sunday, ceding little ground on China's currency policy and suggesting that U.S. efforts to boost its exports by weakening the dollar amounted to "a kind of trade protectionism."

In his once-yearly news conference, Mr. Wen blamed U.S. weapons sales to Taiwan and President Barack Obama's meeting with Tibet's spiritual leader, the Dalai Lama, for causing a recent deterioration in what he called China's most important foreign relationship.

"These moves have violated China's territorial integrity," Mr. Wen said. "The responsibility does not lie with the Chinese side but with the United States." Mr. Wen said a good China-U.S. relationship "makes both sides winners while a confrontational one makes both sides losers."


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Mr. Wen also mentioned another reason China pays close attention to its exchange rate with the U.S. dollar: the nation's enormous foreign-exchange reserves, most of which are believed to be held in U.S. government bonds.

"Since the U.S. is the issuer of the main international currency, any instability in its currency causes us great concern. Last year I said I am worried, and this year I also say I am worried," Mr. Wen said.

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http://online.wsj.com/article/SB10001424052748703457104575121213043099350.html?mod=googlenews_wsj