Fixed yuan 'legitimate choice'-World Bank director

[applegrove]

By Lesley Wroughton
Tue Jun 28, 3:33 PM ET

http://news.yahoo.com/s/nm/20050628/ts_nm/economy_china_worldbank_dc;_ylt=AtogPtBkZSCbdImHgzcZurRZ.3QA;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

WASHINGTON (Reuters) - The World Bank's director for China said on Tuesday Beijing's fixed exchange rate policy was a "legitimate choice" and not a manipulation of the yuan currency, despite escalating rhetoric from Washington.


"I don't agree with any of the criticisms of China that it is manipulating its exchange rate," David Dollar told a meeting of the Washington-based Center for Global Development.

"My own preference would be to move to a more flexible exchange rate system (but) it is a very difficult thing to manage and lots of developing countries have had financial crises as they have made this transition, so I respect the fact that the Chinese authorities are cautious," he added.

The Bush administration has been pushing for a revaluation of the yuan, which has been pegged at 8.28 to the dollar for more than 10 years -- a level U.S. exporters and many lawmakers complain keeps China's goods unfairly cheap.

-- Snip -- "

[Oversea Visitor]

1. Hehe my country is peg at

3.8 ringgit to a dollars. If China make no change we are staying put too x( On the other hand we are scare that our currency will get attack if we unpeg. 1997 was bad we lose like half our wealth. We didnt suffer so much cause we rejected IMF cure and instead peg our currency. US was sure mad with us. Then China followed and hey look there first dont look at us. heh heh heh

[applegrove]

2. And who is to say that some African country may not decide to have

a more communal way of sharing wealth than the strict rules the neocons want to apply to their economies? Who is to say that they may want to beg their dollars?

[Merlin]

3. Our insistence on China floating the Yuan is jingoist chutzpah.

China is doing what's in her own best interests.

The more I see of China, the more I am impressed with how seriously the leadership takes its role of wise and cautious guidance of that nation's development.

[applegrove]

4. All the while they invade Tibet and try and culturally kill it off by mass

migration and stealing children like the Panche lama and replace the child with one of their own choosing.

[anarchy1999]

6. Don't they operate on a 1000 year plan or somesuch? I'm quite certain

I've read it somewhere before. Oh well.......
Cheers to us and Wal-Mart? Right?

[cire4]

5. Bush: We're losing so you have to change the rules!!!

Sorry Georgie...this is how the free trade game is played.

Of course China's position is legitimate. Why should Beijing put the interests of Washington ahead of the interests of the Chinese people and the Chinese economy?