Corporate foreign exchange news

Published by Mark Smith-HalvorsenChinese premier Wen Jiabao has rejected claims that the yuan is undervalued, snuffing out speculation that the country may allow its currency to appreciate.Speaking at a press conference attended by Bloomberg, Mr Wen insisted that the yuan is not undervalued."We oppose countries pointing fingers at each other and even forcing a country to appreciate its currency," he said, in rhetoric that is likely to sit uneasily with the US, which has called repeatedly for a review of the country's currency strategy.The yuan is not floated openly on foreign exchange markets as the dollar, euro, yen, sterling and other major global currencies are, and in the wake of the financial crisis there has been growing criticism that China has kept its currency artificially low to help boost trade and exports.Mr Wen's comments will come as a blow to currency risk management strategists, undermining as they do a report published last week by Standard Chartered which predicted that China may allow its currency to appreciate by mid-April.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site