Wu Xiaoling, Vice Governor of the People's Bank of China, the central bank, said recently that the US pressuring China to appreciate the RMB would be "detrimental to the launch of the reform on the RMB exchange rate".

Wu's remarks in an interview on April 27 by Nikkei are the latest message delivered by China's central bank on the reform of RMB exchange rate.

As a response to the opinion by some Americans that the Chinese currency has been undervalued, Wu said: " China is in deficit in its trade with Asian countries, Japan and South Korea. Theoretically, nobody is able to work out an exchange rate accurately."

She insisted that China would not be subdued to the pressure from the US. China's 16.6 billion USD of trade surplus in the 1st quarter of this year has aroused her concern. " I don't think it is good. Instead, it will bring risks of more trade friction and mounting pressure on the RMB appreciation. The anticipation for stronger yuan has motivated businesses to gear up their exports and slow down their imports," she said.

Wu also mentioned the adjustment on the real estate sector. She recognized that the housing prices were going up at a pace beyond the affordability of ordinary consumers. But she further clarified that a negative rise of the housing sector as a result of impediment measures was not what the government wanted. What the government hoped, she stressed, was a "steady growth" of the sector.

By People's Daily Online