Exporters call for weaker renminbi

Exporters are calling on Beijing to weaken the renminbi after the biggest drop in overseas sales in over a decade, the South China Morning Post reported. This would put businesses at odds with the People’s Bank of China which has pledged to keep the currency stable following allegations of currency manipulation by US Treasury Secretary Timothy Geithner. Exporters said they would like to see the renminbi depreciate to approximately RMB7 to the dollar in order to make their products more attractive to foreign buyers. The currency has risen approximately 21% since the central government ended the renminbi’s peg to the dollar in 2005. China’s overseas sales slid 17.5% year-on-year in January, the biggest drop in almost 13 years, according to customs data. Beijing said it will increase domestic investment this year to counter slowing demand for China’s exports.