05 OCT 2010
By Jan Strupczewski and Justyna Pawlak
(Reuters) - China politely rebuffed European calls on Monday for a faster revaluation of its yuan currency, telling a European Union-Asia summit that its goal was to maintain foreign exchange stability.
Prime Minister Wen Jiabao, addressing the opening session of a 48-nation summit representing more than half of the world's population and economy, said: "We must work together to... keep exchange rates of major reserve currencies relatively stable."
The United States and the EU accuse Beijing of keeping its currency artificially weak to promote exports, undermining jobs and economic competitiveness in advanced Western economies.
"We do believe that the yuan is totally undervalued," a spokesman for Jean-Claude Juncker, chairman of the 16-member euro zone's finance ministers, told Reuters.
China holds the world's biggest foreign currency reserves, having accumulated vast amounts of U.S. dollars and euro assets.
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