Stability vital for exporters

By Ding Yining  |   2009-4-20  |     NEWSPAPER EDITION

CHINA will continue to ensure the yuan is stable to favor its exporters, analysts said.

The Chinese currency edged up against the United States dollar last week and ended at 6.8311 last Friday, according to the China Foreign Exchange Trade System. The yuan ended at 6.8347 at the end of the previous week.

"The yuan's reference rate, used by the central bank, was set stronger in line with a weaker dollar in global markets," said Gong Chao, a Beijing-based dealer at the Bank of China, when he commented on the slight rise of the yuan against the greenback. "The government will stick to a stable currency policy at least in the first half of the year" in order to help its exporters.

At the opening ceremony of the Boao Forum for Asia on Saturday, Premier Wen Jiabao said "the government's stimulus package is already paying off, and positive changes have taken place in the economy."

Wen also noted the world economic recession is here to stay for some time and problems in the financial system are still not resolved.