In a report released by WikiLeaks, the bank's chief economist Hwa Erh-cheng also predicted a three percent rise in the value of the yuan against the dollar this year. So far the yuan has risen 3.05 percent.

Amidst a fierce back and forth between Beijing and Washington over the value of the Chinese currency -- which the United States says is artificially undervalued, skewing trade -- Hwa said an rapid rise was unlikely.

"(Hwa)... agreed that the exchange rate was a 'challenge' for the People's Bank of China (PBOC), and even though the PBOC might be forced to allow appreciation, it would only be incremental because the international environment remained fragile and the export recovery was not strong."

"Predicting that the RMB (renminbi, or yuan) would rise about three percent in 2010 and five percent in 2011, Hwa concluded that it was unlikely to be a 'one-shot' change."

The cable was sent from the US embassy in Beijing following talks with senior Chinese officials.

It also shows China's reluctance to put the currency issue on the official agenda of high-level meetings.

Share This Article With Planet Earth

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Related Links
The Economy

Adopted Haitian children fly in to Paris on Christmas Eve Plane carrying adopted Haitian children arrives in France Adoptive parents arrive in Haiti to fetch children Caricom-Australia chide empty promises to Haiti Ever-Sharp Urchin Teeth May Yield Tools That Never Need Honing Tablet computers come of age with iPad mania New Kindle becomes Amazon's all-time best seller Skype brings video calls to iPhone, iPod, iPad China's Zijin Mining makes payout over deadly dam collapse Sand from Bangladesh may boost Maldives Study: Dams will damage Peru's environment US shark fin restrictions carry little weight in Hong Kong Polar Bears No Longer On Thin Ice H.K. duck's epic Arctic trip sheds light on migration Obama gives 'lump of coal' to polar bears: activists Polar bear status at heart of climate war 'Plant List' gives boost to conservation effort Study: Human error spreads GM crops Chateau Lafite, thanks to a lucky 8, takes off in China Expert warns on China's future food supply Hundreds flee Australian floods as disaster worsens Australia PM praises 'resilience' of thousands hit by floods Two dead, thousands evacuated in Philippines rains Jeddah waste-high in water after flood Military intervention in ICoast ruled out now: Cape Verde Religious fighting threatens Nigeria poll I.Coast's Ouattara urges army to turn on mercenaries Dutch navy supply ship on its way to Ivory Coast 'Living pigment' in rock art discovered Ancient human group identified by DNA Beetroot Juice Could Help People Live More Active Lives Researchers Discover Compound With Potent Effects on Biological Clock