BEIJING — China promised Wednesday to keep its exchange rate stable and said it would use part of its $1.95 trillion in foreign currency reserves to boost imports and consumer spending to combat the global financial crisis.
Chinese exporters that face plunging sales want the yuan devalued, which would make their goods cheaper abroad. But economists say they see no sign Beijing will take such a step, which could fuel tensions with its trading partners.
The yuan was allowed to rise by about 21 percent against the U.S. dollar from mid-2005 until mid-2008, but it has held steady since July at about 6.85 to the dollar.
Economists say a weaker yuan would do little to boost Chinese exports because demand abroad is too weak. They also say a devaluation could trigger a round of similar moves by other exporters.
