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Issuing a warning to speculators, China said it is
unlikely to let its currency appreciate
in the near future.
Dispelling growing speculation, the State Administration of Foreign
Exchange (SAFE) reiterated on Tuesday its floating exchange rate regime
still fits national conditions.
It also said the Chinese Government's stance remains unchanged and
will gradually improve the mechanism through which the renminbi exchange
rate is decided while keeping it fundamentally stable.
"Perfecting the exchange rate mechanism is China's own choice, and it
will be based on fully considering the endurance of the Chinese society
and economy and sharp fluctuations in the exchange rate shall be avoided,"
a spokesman said.
"Keeping the renminbi exchange rate fundamentally stable is
conducive not only to the sustained and healthy growth of the Chinese
economy and society, but to the economic and financial stability of the
world."
China has been under foreign pressure since last year to revalue its
currency, which some trading partners say is undervalued.
It reached a fevered pitch earlier this month when top central banker
Zhou Xiaochuan and Finance Minister Jin Renqing were invited to a G7
finance minister's meeting.
The spokesman said improving the exchange rate mechanism is one of
China's goals, but the pace depends on economic development, macroeconomic
performance, international balance of payments and other related reforms.
"It cannot be done overnight, and there is no timetable," he said.
"From a long-term perspective, the renminbi can both rise and fall
after greater exchange rate flexibility is achieved," he said. "It cannot
be a single direction movement."
(Agencies) | 
Updated: 2004-10-13 11:43
