--- SEARCH ---
WEATHER
CHINA
INTERNATIONAL
BUSINESS
CULTURE
GOVERNMENT
SCI-TECH
ENVIRONMENT
SPORTS
LIFE
PEOPLE
TRAVEL
WEEKLY REVIEW
Film in China
War on Poverty
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates
Hotel Service
China Calendar
Telephone and
Postal Codes


Hot Links
China Development Gateway
Chinese Embassies

The Ministry of Foreign Affairs
Permanent Mission of the People's Republic of China to the UN
Permanent Mission of the People's Republic of China to the United Nations Office at Geneva and other International Organizations in Switzerland
Foreign Affairs College
Greenspan Says Floating RMB Not Helpful to US Trade

US Federal Reserve (Fed) Chairman Alan Greenspan said on Friday that the soaring trade deficits probably would not be helped by China revamping its currency system.

Answering questions following a speech he delivered to the Economic Club of New York, Greenspan said that a move by China to revalue its currency "probably quite unlikely" to reduce the US overall trade balance.

Greenspan said that that is because US companies are likely to turn to other countries, such as Thailand or Malaysia for goods, rather than US producers.

"So essentially what we will find is we're importing from a different area, but we will be importing the same goods," Greenspan said.

He also said that letting the Chinese currency move higher against the dollar would increase prices American shoppers pay for Chinese goods in the United States.

"The effect will be a rise in domestic price in the United States," he said.

The United States' trade deficit soared to a record high of 617billion dollars last year. The US government has been pressing China to stop linking its currency to the US dollar and instead move to a more flexible currency system in a bid to cut US trade deficit.

Chinese Premier Wen Jiabao said last Monday that China regards the reform of the exchange rate of Renminbi (RMB) as an issue of sovereignty and will never yield to any external pressure to change it.
 
(Xinhua News Agency May 21, 2005)

US Fed Hikes Rate for Sixth Time
US Fed Boosts Interest Rate by a Quarter Percentage Points
Fed Raises Rates, More Hikes Seen Likely
Greenspan: Free Floatation of RMB Could Be Risky
Print This Page
|
Email This Page
About Us SiteMap Feedback
Copyright © China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688