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To: BillyG who wrote (33943)	6/19/1998 8:34:00 PM
From: John Rieman	Read Replies (3) \| Respond to of 50808

China's central banker. US currency intervention brings new pledge not to devalue the Yuan.......................... chinadaily.net Dai stresses solidity of yuan CHINA'S central bank governor, Dai Xianglong, yesterday hailed the move of the Japanese and US governments to support the faltering yen and reaffirmed that the Chinese currency will not be devalued. "We firmly believe that the exchange rate of the renminbi will remain stable," Dai told the 4th Annual Meeting of the Association of Development and Industrial Banks in Asia which opened yesterday in Beijing. "There is no need to devalue the renminbi." He welcomed the action taken by the Japanese and US governments on the currency markets to bolster the yen. "We are glad to see the exchange rate of the Japanese yen going up." The yen rose to 135.70-75 to the US dollar in early trading in Tokyo yesterday after Japan intervened on the currency markets to buy yen. The United States also took steps by selling dollars. According to reporters, the US Federal Reserve Bank and the Bank of Japan spent US$6 billion supporting the yen in European and US markets overnight. Their joint intervention reversed the yen's slide after its steep falls of the past two weeks. The yen began to slide on June 9 when the US dollar briefly climbed above 141 yen. In the following week, the yen continued to fall, hitting an eight-year low against the greenback of 146.75 on Tuesday. "We hope developed countries such as Japan and the United States will make further efforts to stabilize the yen," Dai said. He said East Asia was undergoing economic restructuring in the wake of the financial crisis. A continuous depreciation of the yen would impose great pressure on financial stability in Asia. However, Dai said, the impact of the financial crisis has not undermined the fundamental factors underlying economic growth in East Asian countries. "After two to three years of efforts, Asian countries will recover from the current economic recession. Asia is still among the world's most dynamic regions," he said. Meanwhile, Foreign Ministry spokesman Zhu Bangzao said yesterday in Beijing that China welcomes the intervention by the US and Japan to prevent the slide of the Japanese yen. He said the policy adopted by "countries concerned" is one of the major reasons for the resurgence of the yen on the international monetary market. US President Bill Clinton and Japanese Prime Minister Ryutaro Hashimoto recently held consultations and reached a consensus on strengthening co-operation to support the yen. Zhu told a regular news briefing that the move as "necessary." China hopes the countries concerned can "practically observe their obligations and duties, appropriately deal with their own problems and make unremitting efforts to promote the economic stability and development of Asia." Zhu said it is crystal clear that China has played a major role in stabilizing the Asian financial situation during the turmoil. "But China has faced risks and paid a price in the crisis," he said, adding that China is concerned about the situation caused by the depreciation of Japanese yen. "We advocate that the US and Japan proceed from consideration of the overall situation and take effective measures to prevent the slide of the yen, and we believe they are capable of doing this," said Zhu. The Chinese Government has committed itself not to devalue the renminbi and has provided US$4 billion in assistance to other Asian nations. -------------------------------------------------------------------------------- Date: 06/19/98 Author: Tong Ting and Shangwu Copyrightc by China Daily