Vice-premier Wu Bangguo has reiterated Beijing's commitment not to devalue the yuan, which he said was underpinned by sound financial fundamentals. He said: 'The [yuan] will not be devalued; we have the full capacity to resist a devaluation.' Mr Wu said the decision to uphold the value of the yuan was based on the country's strong trade surplus, which stood at about US$40 billion last year, and foreign reserves of $146 billion. But foreign analysts feared that the yuan's strength could be shaken if the fall in exports and realised foreign direct investment registered in the first quarter continued for the remainder of the year.
