Premier Wen says China will keep yuan "basically stable"

BEIJING, March 14 (Xinhua) -- Chinese Premier Wen Jiabao reiterated on Sunday that China will stick to a stable yuan and opposes other countries pointing their fingers at its currency policy, despite increasing pressures on yuan appreciation.

Chinese Premier Wen Jiabao smiles during a press conference after the closing meeting of the Third Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 14, 2010. (Xinhua/Xing Guangli)

"A country's exchange rate policy and its exchange rates should be decided by its national economic situation," Wen said while meeting the press after the annual parliament session.

Wen said China will further improve the yuan exchange rate formation mechanism and keep the yuan exchange rates basically stable at a reasonable and balanced level.

Foreign pressures will not help the currency reform, the Premier said.

He said a stable yuan has played an important role in facilitating the recovery of the global economy from the worst financial crisis in decades.

China began its currency reform to unpeg the yuan against the U.S. dollar in July 2005, the yuan has appreciated 21 percent against the U.S. dollar, or 16 percent in real terms, Wen said.