China Can Avoid Currency Crisis Affecting Southeast Asia

China, enjoying a stable economic situation and favourable balance of international payment is confident of protecting its currency against any volatile movement that hit Southeast Asia in recent weeks, a report said here yesterday.

The sharp devaluation of currencies in southeast Asian countries like Thailand and the Philippines mainly resulted from the sudden withdrawal of foreign capital and the selling of local currencies by international speculators when these countries suffered expanding deficits in current accounts, declining exports and slower economic growth, which weakened overseas investors confidence.

However, the situation in china is entirely different, a leading foreign exchange expert Chen Quangeng told the official