Appreciation must proceed 'gradually'
SHANGHAI - China's exchange rate(匯率) reform [ri?f?:m](改革) will be a "gradual"(漸進(jìn)的) process, said Yi Gang, vice-governor(副行長(zhǎng)) of the central bank(中央銀行), on Monday, while pressure [?pre??](壓力) for faster yuan appreciation [??pri:?i:?e???n](升值) remains despite the delayed release of the US government's currency report(貨幣分析報(bào)告).
"Hopefully the renminbi exchange rate will be fairly stable(相對(duì)穩(wěn)定) at a close to equilibrium(平衡) market-determined range,"(市場(chǎng)選擇范圍) Yi said at a press conference(記者招待會(huì)) following a meeting of International Monetary Fund (IMF)(國(guó)際貨幣基金組織) officials and central bankers in Shanghai.
He also said a more flexible [?fleks?bl](具備彈性的) yuan will help reduce inflationary pressure(通脹壓力).
Tensions(緊張氣氛) over the yuan have been escalating(上升) recently with the United States taking the lead in demanding faster appreciation(要求更快的升值).
On Friday, the US Treasury(美國(guó)財(cái)政部) delayed the release of a report(報(bào)告的發(fā)放) on whether China and other nations "manipulate"(操縱) their currencies to benefit their trade with the US.
Analysts said the delay does not signal a softer US stance(立場(chǎng)) on the yuan. "The delay does not mean the US has given up on the issue, and probably it expects to further press China during the coming G20 Seoul meeting," said Chen Baosen, senior expert on China-US trade and economic studies at the Chinese Academy of Social Sciences(中國(guó)社科院).
The US may want to leave some room [ru:m](空間)to coax(勸誘) China into allowing faster yuan appreciation, he said. "But the yuan's value is a sovereign [?s?vrin](自主決定的) issue for China, which should decide on the pace of reform(改革步伐) on its own."
The US is aiming at the wrong target(錯(cuò)誤的目標(biāo)) by blaming the yuan for its economic woes(經(jīng)濟(jì)災(zāi)難), analysts said.
"I don't think the issue has anything to do with the US deficit [?defisit](赤字)with China, and the reason (for the deficit) is that the US consumes(消費(fèi)) a lot but saves little. Undoubtedly(毫無(wú)疑問(wèn)的是), China is a scapegoat(替罪羔羊)," Daniel J. Ikenson, associate director(副校長(zhǎng)) of the Center for Trade Policy Studies at the Cato Institute, said.
Drastic(急劇) yuan appreciation would damage the Chinese economy, and consequently(從而) the global economy, said Huo Jianguo, director of the Chinese Academy of International Trade and Economic Cooperation at the Ministry of Commerce(商務(wù)部)

.Yi Gang confirmed China will continue to expand domestic demand(國(guó)內(nèi)需求) to help the global economy. "We will emphasize [?emf?saiz](著重) domestic demand."