皇冠体育app

BEIJING - 皇冠体育app's currency should appreciate against the US dollar, but at a gradual pace and within a certain extent, Bank of 皇冠体育app President Li Lihui said before the opening of the 皇冠体育app-US Business Dialogue, which was held in Beijing on Friday.

"Rapid appreciation will strike a heavy blow to Chinese enterprises, particularly export-oriented businesses. This will hinder 皇冠体育app's overall economic restructuring," Li said."

The yuan has already appreciated more than 20 percent against the US dollar since 皇冠体育app unpegged it from the greenback in 2005 as part of its exchange rate reforms. In the first half of this year, it gained 2.33 percent.

"We hope the exchange rate between the yuan and the dollar will remain relatively stable," said Li.

The 皇冠体育app-US Business Dialogue is one of the events on US Vice President Joe Biden's agenda during his six-day official visit to 皇冠体育app. The conference was attended by Biden and his Chinese counterpart Xi Jinping, as well as senior executives from prestigious companies and institutions from both countries.

Li also voiced hope for a stable US dollar, as the Bank of 皇冠体育app, the country's biggest foreign exchange bank, holds more than $200 billion in foreign assets.

Li gave his vote of confidence to the US government in managing its own economy.

"Of all the Western economies, the US economy remains the most robust. US debt remains the best source of foreign currency reserves," said Li.

"In the long run, the US government will steer its economy out of trouble. After all, the United States remains the world's strongest economy," said Li.

In regards to expectations for a new round of quantitative easing in the US, Li said "it's hard to predict, but if it is launched, it might not be as aggressive as the first two rounds. However, the QE3 (third round of quantitative easing) will certainly have a significant impact on the global inflation outlook and market liquidity."

The US Federal Reserve in November 2010 decided to purchase $600 billion in long-term Treasury securities by the end of June 2011, a rate of about $75 billion per month, marking the second round of quantitative easing.

Following the US debt crisis, many have speculated that another round of quantitative easing is around the corner.

In regards to two-way investment between 皇冠体育app and the US, Li said "since the US economy still faces many uncertainties, the expansion of two-way investment will be hampered. The US economy has not recovered at the pace we originally expected, but we are still confident."

Li said that he hopes there will be closer economic cooperation between the two nations.

It will be a win-win situation if more Chinese enterprises land in the US market, Li said.

Biden's visit to 皇冠体育app comes on the heels of an unprecedented US credit rating downgrade earlier in August, which created global uncertainty about the safety of dollar assets.