Chinese Premier Wen Jiabao asks for gradual appreciation in country’s currency

Chinese Premier Wen Jiabao asks for gradual appreciation in country’s currency

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Asia Bizz: Chinese Premier Wen Jiabao has clearly made his point by stating that there should only be a gradual increase in the country’s currency; and has debunked the theory of fast economic expansion of China. He quoted that there will be a huge impact on jobs and domestic companies in the country, if there is an appreciation of the currency.

Jiabo is also concerned about the ongoing inflation and then the power of the currency in the country. China will need to gradually go ahead in appreciating with its currency, the renminbi, for in this way it shall not affect the economy, jobs or even the domestic companies.

China’s currency, the renminbi or RMB, has appreciated by 57.9% since 1994, which in itself is massive and since then there have been three reformations in the currency of the country. Currently the government has decided to target 7% and above growth in the economy of the country, which the Premier feels will not be an easy task.