CHINA / National

NBS: Administrative adjustment of RMB ruled out
Updated: 2006-07-18 18:53

China would not appreciate or depreciate RMB with one-time administrative measure, Zheng Jingping, a spokesman for the National Bureau of Statistics (NBS) said Tuesday during a press conference on national economic operation in the first half of this year.

Regarding the exchange rates of RMB, Zheng said the reform of RMB exchange rate producing mechanism in the past year was successful. China began its currency reform on July 21 of last year.

RMB exchange rates have witnessed appreciation during the one-year fluctuation of the past year. By the end of June, RMB exchange rates had increased by 3.5% from July 21 of last year, including the one-time appreciation of 2% at the beginning of the reform.

Zheng said the current RMB exchange rate producing mechanism had reversed the imbalance of the China¡¯s import and export trades, playing a positive role in the stable economic operation.

Zheng said the mechanism needed further improvement but one-time administrative appreciation or devaluation of RMB would not happen any more as Premier Wen had said, i.e. there will be no more surprises on currency adjustments.

Zheng said Chinese economy had been an important part of world economy and any change in Chinese economy or financing would affect the operation of world economy and financing.

"Speculators will not achieve their goal or gain from making bets on RMB appreciation," Zheng said.