Governor: Renminbi reform on sound track By Li Fangchao (China Daily) Updated: 2006-03-13 05:33
China will reform its foreign exchange system in an orderly way and will not
bend to pressure from the US to float the yuan, said Zhou Xiaochuan, governor of
the People's Bank of China.
China has its "own principles" to carry out its exchange rate reform and the
current rate is appropriate, Zhou told reporters at the sideline of the annual
session of National People's Congress (NPC) on Saturday.
Zhou Xiaochuan,
governor of the People's Bank of China
[newsphoto/file] | In response to the recent fall
of the yuan on the international market, Zhou said it was mainly determined by
the supply and demand force in the market. He said that the dollar was a little
stronger against the euro and the yen, thus affecting the yuan.
Zhou said that although the main theme of the World Bank and International
Monetary Fund meeting in April is about the global economic disparity,
discussion with the US on bilateral issues would be also unavoidable, without
elaborating whether currency reform will be involved.
US Treasury Secretary John Snow again urged China to float its exchange rate
on Friday. There are reports that he is under mounting pressure from the US
lawmakers to label China a currency manipulator in a report due in April. US
President George W. Bush also said that he would adopt further movement to press
China to appreciate its currency soon.
The yuan has floated less than one per cent since the central government
revalued it and discarded its peg on the greenback on July 21 last year.
Premier Wen Jiabao said in this year's government report that China will
improve the system of managed floating foreign currency exchange rates and keep
the Renminbi exchange rate basically stable at an appropriate and balanced
level.
(China Daily 03/13/2006 page2)
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