Center
Council against forced appreciation of Renminbi
(Xinhua)
Updated: 2006-09-12 10:19
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Frisbie proposed that China should reform its banking and consumer loan systems and set up a sound social security system so that the Chinese people would be encouraged to consume part of their savings in the bank.
In this way, he said, the Chinese economy shall no longer be driven by exports and investment but by domestic consumption.
Such reforms shall also help to solve exchange rate and trade deficit issues.
The yuan's value had risen by about 3.8 percent against the dollar in the 12 months since July 21, 2005, when China revalued the currency by 2.1 percent and revised its trading system to link the yuan's value to a basket of major currencies instead of just the U.S. dollar.
China has ruled out the possibility of any further depreciation on the same lines.
There will be no more "surprise adjustments", Chinese Premier Wen Jiabao told foreign journalists in Beijing recently.