China says RMB exchange rate "reasonable", dismisses U.S. criticism over trade
<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China dismissed the latest U.S. criticism on its trade surplus on Feb 4th, saying its currency exchange rate is close to a reasonable level.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
"We expect the United States to take a rational view of bilateral trade issues and to adhere to equality in negotiation. Accusations and pressure will not bring solutions," Foreign Ministry spokesman Ma Zhaoxu said at a regular briefing.
Ma's comments came a day after U.S. President Barack Obama said his administration will "get much tougher about enforcement"of trade rules in its dealing with China. Obama said his administration will put "constant pressure on China" to liberalize its capital account and appreciate the currency.
"Our currency, the RMB, has appreciated more than 20 percent against the U.S. dollar since July 2005, when China moved to a floating exchange rate regime," Ma said. Before 2005, the RMB was pegged to the U.S. dollar at a fixed rate.
"The RMB exchange rate has drawn close to a reasonable and balanced level, given the international balance of payments and the market supply and demand for foreign exchange," Ma said.
Ma dismissed the notion the RMB exchange rate is the major cause of the U.S. trade deficit.
"China has never attempted to seek a trade surplus," Ma said, adding that China-U.S. trade cooperation is mutually beneficial.
