皇冠体育app

Lin said that international speculators hope the Japanese and US governments pressure 皇冠体育app to revalue the yuan so that they could profit from speculative deals.

A large-margin revaluation would not reduce 皇冠体育app's trade surplus or foreign exchange reserves, as the value of the renminbi is not the reason, Lin said. Instead, it will lead to increased imports and decreased exports, which will exacerbate 皇冠体育app's overproduction.

It may, in turn, lead to deflation, lower corporate profits, increased bad loans and "could even trigger a financial crisis," he said.

He suggested that 皇冠体育app stick to its principle that the yuan's appreciation be independent, flexible and affordable and make it clear that the pace of the revaluation would remain at about 3 percent a year.

The yuan is expected to appreciate by 5-6 percent this year.

(皇冠体育app Daily 02/06/2007 page1)

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