03-12-2006, 09:24 AM
<b>China Won't Bow to U.S. on Yuan Reform, Zhou Says </b>(Update2) <!--QuoteBegin-->QUOTE<!--QuoteEBegin-->March 11 (Bloomberg) -- China won't bow to pressure from the U.S. to step up its timetable for making the yuan currency to appreciate further, central bank Governor Zhou Xiaochuan said.
<b>China will follow its ``own principles'' on yuan reform and current yuan fluctuations are appropriate,</b>
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<b>China's yuan had the biggest weekly drop since July's revaluation after central bank</b> Assistant Governor Yi Gang said on March 8 that the People's Bank of China doesn't have plans to expand the daily 0.3 percent currency band. The yuan, a denomination of China's currency the renminbi, fell 0.2 percent to 8.0505 in the week ended yesterday, the lowest close in a month, according to data compiled by Bloomberg.
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Senators Charles Schumer, a Democrat, and Lindsay Graham, <b>a Republican, are sponsoring legislation that would impose tariffs of 27.5 percent on Chinese-made goods unless the yuan is allowed to rise faster.</b>
Former U.S. Federal Reserve Chairman Alan Greenspan ``was a force of sensible analysis on the yuan, and now the current Fed Chairman Ben Bernanke, when he had a chance to repeat that line, said he shares the frustration of the Congress,'' Standard Chartered's Green said.
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<b>China's foreign-exchange reserves jumped a third to $818.9 billion last year</b>, driven by foreign direct investment and surging exports. The nation's trade surplus tripled to a record $102 billion in 2005, prompting the U.S. and European Union to increase calls for China to make its currency more flexible.<!--QuoteEnd--><!--QuoteEEnd-->
<b>China will follow its ``own principles'' on yuan reform and current yuan fluctuations are appropriate,</b>
................
<b>China's yuan had the biggest weekly drop since July's revaluation after central bank</b> Assistant Governor Yi Gang said on March 8 that the People's Bank of China doesn't have plans to expand the daily 0.3 percent currency band. The yuan, a denomination of China's currency the renminbi, fell 0.2 percent to 8.0505 in the week ended yesterday, the lowest close in a month, according to data compiled by Bloomberg.
............................
Senators Charles Schumer, a Democrat, and Lindsay Graham, <b>a Republican, are sponsoring legislation that would impose tariffs of 27.5 percent on Chinese-made goods unless the yuan is allowed to rise faster.</b>
Former U.S. Federal Reserve Chairman Alan Greenspan ``was a force of sensible analysis on the yuan, and now the current Fed Chairman Ben Bernanke, when he had a chance to repeat that line, said he shares the frustration of the Congress,'' Standard Chartered's Green said.
..............................
<b>China's foreign-exchange reserves jumped a third to $818.9 billion last year</b>, driven by foreign direct investment and surging exports. The nation's trade surplus tripled to a record $102 billion in 2005, prompting the U.S. and European Union to increase calls for China to make its currency more flexible.<!--QuoteEnd--><!--QuoteEEnd-->