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Chinese economists warn of risks of continued yuan appreciation (2) |
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08:26, July 25, 2007 |
The real value of the yuan has gone up by 4.41 percent since it was revalued by 2.1 percent from 8.28 yuan in July 2005, according to latest statistics from the Bank for International Settlements.
The accelerating pace of the yuan revaluation and the amounting pressure for the yuan appreciation are independent of the country''s monetary policy, said Tan, adding that the trend might be going against the real situation of the Chinese economy.
Many, including the U.S. Federal Reserve Chairman Ben Bernanke, said the yuan appreciation was in the interest of China.
They have too much focused on the price of the currency and neglected the structural problems of the country''s economy and its financial sector, Tan said.
The Chinese economy is still at the low end of market economy, compared with the high-end developed economies to which the yuan is linked, in terms of technologies, production efficiency, industrial development and consumption, she said.
The country would face great risks with a strong yuan in the long run if it failed to improve the quality of its economy to support the currency by then, Tan warned, urging the government to be alert and take precautions against the risks.
[1] [2] [3]
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