Oil price impact on China's economy 'limited'
Updated: 2005-10-20 13:22
Exchange rate to remain stable
China's currency exchange rate
will remain stable for a period of time, Zheng said.
China announced its decision on Renminbi (RMB) exchange rate reform,
introducing a floating width band of about 2 percent for the currency against a
basket of foreign exchange on July 21 of this year, shortly after the NBS made
public figures on performance of the national economy.
On July 21, the People's Bank of China, China's central bank, announced that
China's currency, the RMB, will be traded at a rate of 8.11 to the US and the
yuan to US dollar pegging system is switched to a basket of foreign currencies.
"That's a pure coincidence, and it won't occur this year," Zheng said.
The key to the exchange rate reform lies in the change of the forming
mechanism of the rate, not simply the exchange rate itself, he said.
Chinese Premier Wen Jiabao said earlier this month that the reform of the RMB
exchange rate is a process of gradual improvement.
He told Rodrigo Rato, Managing Director of the International Monetary Fund
(IMF), that the most important thing at present is to deepen the results of the
exchange rate reform and to improve services in relevant fields.
That includes improving the foreign exchange market and providing more
financial services to enterprises to avoiding risks, improving the adjustment
mechanism of the RMB exchange rate and intensifying supervision of cross-country
capital flows to ensure the smooth operation of the new exchange rate mechanism,