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China Concerned About U.S. Dollar

At his annual press conference after the closing of the National People's Congress Sunday, Chinese Premier Wen Jiabao once again expressed his concern about the U.S. dollar.

We note that China is becoming more vocal regarding its desires for the U.S. to control its ever-expanding budget deficit and to take steps to prevent inflation due to the fact that both erode the value of the dollar and China's holdings.

"Any fluctuation in the value of the U.S. currency is a big concern for us," Jiabao said.

The premiere added, "We cannot afford any mistake, how slight it is, when running our financial assets," he said. "I would like the United States to take concrete steps to reassure investors."

Jiabao suggested that the value of the dollar should be a matter of the "national credibility" for the United States.

Source: Associated Press

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