China's central bank governor Dai Xianglong has stepped up an attack on Japan for allowing the yen to devalue, but he maintains the yuan is stable despite mounting pressure.
Mr Dai said: 'The yen's devaluation has had a huge impact on the yuan. Many Asian countries saw their currencies devalue as a result.'
He said a yen devaluation would not benefit the Japanese economy, despite hopes a cheaper yen would boost exports and help its flagging economy.
The yen has fallen to a three-year low of 135 to the US dollar. It was trading yesterday at 132.3 to the dollar.
Mr Dai said: 'The yuan will not be devalued, nor will it appreciate a lot as other countries have forecast.'
He said the stability was supported by China's rapidly growing foreign-exchange reserves, with the first two months of the year adding another US$10 billion to more than US$210 billion on the books. China has the world's second-largest foreign exchange reserves.
