|
China will not reform the exchange rate of the
renminbi (RMB) while hot speculations
are piled on the Chinese currency, said Premier Wen Jiabao in
Vientiane Sunday.
Chinese monetary policy experts have estimated that up to US$30 billion
of so-called "hot money" has thronged to China’s inland cities and Hong
Kong, buying Chinese RMB yuan, in its gamble that China’s central bank
will in the coming months raise the price of its currency.
The Chinese Government is taking four factors into consideration when
dealing with reforms to the RMB, Wen told reporters after meeting with
leaders attending the ongoing meeting of Association of Southeast Asian
Nations (ASEAN).
The first is that any changes must meet certain conditions, and the
most important is a stable macro-economic environment, a sound market
mechanism and a healthy financial system.
The second is that there must be an appropriate plan to keep the RMB
stable at a "reasonable and balanced" level, said Wen, adding that the
flexibility of RMB must be increased.
The third factor relates to the timing of any policy."To be honest, the
more speculations are made in society (about RMB), the less chance we will
take the measure (to change RMB)," said Wen.
The last is that China will take into consideration the influence of
RMB reform on China's economy as well as the economies in the region and
the world.
"China is a responsible country. In the financial crisis in 1997, we
kept the stability of the RMB and made due contributions," said Wen,
adding China will not only be responsible for benefits to the Chinese
people, but also for the whole world.
(China Daily) | 
Updated: 2004-11-29 10:50
