Chinese Premier Wen
Jiabao said in Beijing Tuesday that China will adopt measures
from a number of aspects to improve exchange rate mechanism of
renminbi (RMB), the Chinese currency, in a steady and appropriate
manner.
Wen made the remarks during his meeting with Charles O. Prince,
chief executive officer of the Citigroup and former US Secretary of
Treasury Robert Robin in the Great Hall of the People in
Beijing.
"We will further advance the reform and forge a mechanism which
is more adapted to the changes in market supply and demand with
still better flexibility," Wen said, acknowledging this reform
represents a systematic project involving a host of aspects.
In this course, Wen added, numerous factors should be taken into
account, including China's macro economic performance, social
development, international income and expenditure; the progress of
the reform on banking sector and progress of reforms in related
spheres; and the economic and financial situation of neighboring
countries and regions and of the world economy and finances.
Improving RMB exchange rate mechanism, and maintaining the basic
stability of the RMB exchange rate on a reasonable and balanced
level are the direction and goal of the reform on RMB exchange rate
system, the Chinese premier said.
In recent years, China has done a lot of related work in
improving the RMB exchange rate mechanism, Wen noted, citing the
accelerated pace in the reform of state-owned commercial banks;
convertibility under the RMB current accounts; steady relaxed
restriction on capital accounts.
Those achievements also involves a more and steady opening of
the capital market; an increase in the number of institutes from
overseas in Chinese securities and stock market and foreign-funded
enterprises; the easing of restrictions on financial market access
and other related businesses, a rapid increase in the number of
products and the scope of the financial market, he added.
China has been following a managed, floating exchange rate
system based on the market supply and demand, Wen acknowledged.
RMB has been in a process of appreciating or devaluating against
major international currencies ever since 1994, when China started
the reform of RMB exchange rates, he recalled. And the floating
range was relatively greater in the four years preceding 1997.
Since 1998, to cope with the Asian financial crisis, The Chinese
government, in a responsible manner, kept the commitment not to
devaluate RMB and narrowed the floating range of the RMB exchange
rate, thus contributing to the stability and development of finance
and economy of Asia and the world at large, Wen said.
"During my visit to the United States last year," Wen said,
"President George W. Bush and I reached five consensuses on Sino-US
economic and trade issues with the core of development, equality
and mutual benefit."
At present, the overall momentum in the development of Sino-US
ties was good and bilateral trade and economic cooperation kept
moving forward, Wen said, voicing the hope that the two sides will
follow the above mentioned guidelines to maintain the sound and
stable growth of trade and economic relations.
(Xinhua News Agency September 29, 2004)