Several comments in connection with the Strategic Economic Dialogue meeting between the US and China closing today in Beijing support the view that the Chinese leadership will not shift to a gradual depreciation policy against the USD.
- Deputy Finance Minister Zhu Guangyao said the nation will keep the CNY "stable at a reasonable and balanced level" and in future will try to "better manage market expectations"
- Commerce Minister Chen Deming yesterday said that China is "not counting on depreciation" to help exporters.
- US Treasury Secretary Henry Paulson said that China is still "committed" to appreciation of the yuan over the medium-to-long term.
- A US statement said "While recognizing that currency movements will be uneven over shorter periods, the US encourages China to continue, and accelerate, renminbi appreciation and flexibility"
