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Stable RMB Benefits World Economy: Chinese FM

A stable Chinese currency will benefit the world economy, said visiting Chinese Foreign Minister Li Zhaoxing on Monday.

Li made the remarks at a press conference following his talks with Japanese Prime Minister Junichro Koizumi and Foreign MinisterYoriko Kawaguchi.

Asked about his opinions on calls from the United States and Japan to demand appreciation of the Chinese currency Renminbi (RMB), Li said a country's foreign exchange rate should be determined by factors such as its own economic situation and balance of payments.

The exports of China are insignificant compared with the economic aggregate of both Japan and the US, which accounted for less than 2 percent of Japan's gross domestic product (GDP).

As Prime Minister Koizumi has said, the Chinese economic development has never posed a threat to Japan and will not affect its economy and the life of the Japanese people, Li noted.

Li said China kept the RMB value unchanged in the 1997 Asian financial crisis, and will continue to decide the the currency policy in light of its domestic situation.

(eastday.com August 12, 2003)

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