China, US lock horns on currency

Beijing, April 14: China has continued to resist pressures from the US to raise the value of its currency, yuan, against the US dollar, amid speculations of a trade war.

The Chinese president has told President Barack Obama that the value of the yuan will neither balance Sino-US trade, nor solve America’s unemployment problem.

Hu Jintao says China will firmly stick to its own path for yuan reform.

The remarks follow widespread speculation over the possibility of a trade war between the two nations this year.

Beijing has frozen the yuan’s exchange rate against the dollar since mid-2008.

Beijing’s decision not to deviate from its strategy comes in response to market volatility experienced during the global financial crisis and ongoing uncertainty in world markets.

———Agencies