China says currency will remain as valued

The premier said the yuan, also known as the renminbi, was "basically stable," The New York Times reported Monday.

He also said other countries were "finger pointing" by targeting the value of the Chinese currency as the reason for trade imbalances.

China, with a trade surplus of $198 billion in 2009, is using a two-part strategy for keeping its advantage in international trades: keeping its yuan undervalued and filing complaints with the World Trade Organization accusing other nations of protectionism, the Times said.

At the WTO, China filed three complaints from 2001 through 2008. Last year, it picked up the pace, filing four cases, two against the United Stated and two against the European Union.

U.S. President Barack Obama said Thursday the yuan required "a more market-oriented exchange rate."

A source told the Times recent International Monetary Fund reports call the yuan "significantly undervalued," which implies the IMF considers it valued 20 percent below fair market value, the Times said.

Copyright 2010 United Press International.