In the midst of the BRIC summit, President Hu Jintao claimed that China has been following a managed floating exchange rate regime in accordance with the principle of independent initiative, controllability and gradualism.
Hu said “despite the tremendous difficulties caused by the global financial crisis, we have kept the RMB exchange rate basically stable and have thus made contribution to the stability of the international economic and financial systems.” China experienced a decline in exports and a sharp increase in unemployment, in the wake of the financial crisis, but nevertheless is giving priority to implement package plans and policy measures taken in response to the crisis.
China’s GDP leaped 11.9 percent in the first quarter and is experiencing very high growth rate. The statistics bureau apparently agreed, repeating in a statement that China would maintain its “appropriately loose” monetary policy and an expansionist fiscal policy.
The subject of Yuan appreciation has become a bone of contention between Beijing and Washington.China today denied reports of reaching an agreement with the United States over Washington's demand to let its currency Yuan appreciate.
China:To Gradually Adopt Floating Exchange-Rate System Under Management [Wall Street Journal,16 April 2010]
China says yuan appreciation expectations rising [Reuters, 19 April 2010]