STAFF REPORTER

Premier Wen Jiabao launched an indirect attack on the US yesterday for failing to halt the slide in the dollar, while vowing not to revalue the yuan under pressure.

In the strongest sign yet of Beijing's concern at the weakening dollar, Mr Wen questioned the US government's management of its currency. "China is a responsible country. We have ensured that the exchange rate of the renminbi remained stable during the 1997 Asian financial turmoil and, by doing so, contributed to the resolution of the crisis," Mr Wen said on the margins of the Association of Southeast Asian Nations summit in the Laotian capital of Vientiane.

"Today, we have to ask a question. The US dollar is depreciating and there is no attempts to manage it. What is the reason for this? Shouldn't the relevant parties take measures?"

Mr Wen described the revaluation of yuan as a major economic issue that should not be carried out under pressure. "[Revaluation] should be introduced when the timing is right. If society continues its rampant speculative activities on the yuan, like it is now, it will be impossible for us to introduce the measure," Mr Wen said.

Changes to the exchange rate required certain conditions, he said.

"The most important is to have a stable macroeconomic environment, a healthy and complete market mechanism and a healthy financial system," he said.

"We must consider the effect on China's own economy and society, and must consider its impact on the region and the world."

Mr Wen's remarks were echoed at home by central bank vice-governor Li Ruogu , who said China had no timetable for the reform of its currency exchange mechanism because it had no idea how long such a reform would take.

Speaking at an Asia-Pacific Economic Co-operation finance and development forum in Sanya , Hainan , Mr Li said China did not wish to see rampant speculation on the value of the yuan, either from within or outside the country.

"[Speculation] will do no good to China's reform, the reform of its exchange rate system or its economic development," he was quoted by China News Service as saying.

Mr Li said the government had been striving hard to combat money-laundering activities in order to maintain healthy and steady economic development.

He said the central bank would continue to relax controls in aspects of the currency exchange system, taking into account China's economic and financial development.

"We will manage what requires our management and relax as necessary. We will definitely continue to maintain our grip on the areas where control is reasonable, essential and required at this stage," he said, without giving details.