SEOUL, South Korea (CNN) -- China does not plan to devalue the yuan, the Chinese ambassador to South Korea said in an interview with a Korean television network on Sunday.

"The current economic situation in China hardly calls for a devaluation of the yuan," said ambassador Wu Dae Wei on a news analysis program aired on the Korea Broadcasting System.

"China's economic growth may have dipped in the past year, but it is still strong. Our foreign reserves are at about $140 billion, which can well cover our annual import payments, and our domestic consumption has room for growth," he said.

The ambassador also said devaluing the yuan would deter economic recovery in Asia.

Speculation that China, burdened by ailing investment agencies and other government companies, will devalue the yuan despite its repeated denials has rocked global markets in recent weeks.

The yuan is only semi-convertible and the government, not the markets, exerts control over the currency. If the yuan were devalued, it would likely weaken other Asian currencies.

"China feels that a swift recovery of the crisis-hit economic countries is for its own benefit," Wu said.

The yuan currently holds firm at around 8.3 to the dollar.

Wu said some Chinese financial organizations had their share of problems, but that they were not as serious as many countries would believe.

Wu echoed the comments of Premier Zhu Rongji, who last November predicted the currency would remain stable for at least a year.

Reuters contributed to this report.