* China says will preserve yuan's stability * Shifts in yuan's value may hurt global recovery * Turkey keen to use yuan/lira in trade
(Adds comments on trade in national currencies)
By Hatice Aydogdu
ANKARA, Jan 7 (Reuters) - China's commerce minister Chen Deming said on Thursday appreciation or depreciation of the Chinese yuan would not benefit the world economy at a time when it is starting to recover.
Chen told a news conference Beijing wanted the dollar to retain its value as China holds large amounts of U.S. securities.
"The Chinese currency, yuan, must definitely preserve its stability. This is good for the world as well," Chen said in remarks translated into Turkish from Chinese.
"At a time when the world economy started recovering, appreciation or depreciation of our currency, instability, will not be beneficial for the world economy," Chen said.
The Chinese Central bank on Wednesday reaffirmed its long-standing position on the yuan, saying it would maintain a stable exchange rate in 2010.
China has effectively re-pegged the yuan at 6.83 to the dollar since its exports dropped sharply with the worsening of the global financial crisis in mid-2008.
A sustained recovery in exports, which have still been declining in year-on-year terms, is seen as a key precondition for Beijing to let the yuan resume the gradual path of appreciation that it followed from mid-2005 to mid-2008, when it rose about 21 percent.
Turkey's trade minister Zafer Caglayan told the same conference that Turkey was keen to use national currencies in its ballooning trade with China.
"Turkey and Russia started trade in national currencies and it's evolving on a positive track and we want to do this with China too," Caglayan said.
Turkey-China trade was worth $12.6 billion in 2008 with Turkey running a large deficit. Turkish exports to China amounted to $1.5 billion in the first 11 months of 2009 out of a $14 billion trade between the two countries.
Chen said some Chinese firms were experimenting with trade in national currencies in some cities, in addition to the U.S. dollar, euro and yen.
"After we gain more experience, we will implement this policy more widely," Chen said.
"The Chinese government does not decide which currency to use in foreign trade, but the firms decide it and they undertake all the risk involved as they make their own decisions," Chen said. (Writing by Selcuk Gokoluk; editing by Chris Pizzey and Toby Chopra)