The Azerbaijan State News Agency

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China`s Wen Sees Gradual Yuan Rise; Can`t Relax On Inflation

14.03.2011 [16:04]
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Baku, March 14 (AZERTAC). The threats posed to employment and social stability mean that the pace of yuan appreciation will be only gradual, Chinese Premier Wen Jiabao said Monday.

Wen, speaking at the annual press conference marking the end of this year`s meetings of the National People`s Congress, also warned on inflation conditions in the first half of 2011.

His comments on exchange rate reform were largely a reiteration of existing policy statements -- including shifting the yuan to a managed floating regime subject to market supply and demand -- though Wen did explicitly link the need to maintain only a gradual pace of yuan reform with the threat of unrest.

"We will continue to increase yuan exchange rate flexibility based on market demand and supply but at the same time, this appreciation will be gradual because it matters to businesses and employment," he said.