Although the exchange rate of Chinese currency Renminbi (RMB) against US dollar has been growing this year, which came to a new high of one US dollar for 8.0380 yuan on Friday, some members of the country's top advisory body hold the reform for a free RMB must follow "China's own pace" rather than the pressure from outside.

 

As far as the reform of the RMB exchange rate is concerned, "we must take into consideration China's own conditions and interests, as well as the basic international economic situation, so as to make a wise choice," said Guo Guoqing, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

 

"To guarantee the economic independence of our country, we must promote the RMB exchange rate reform according to our own plan," said Guo, also professor of the Business School of the People's University of China.

 

Facing a new wave of pressure for the appreciation of the RMB, a senior official of the People's Bank of China, or the central bank, said Thursday that there is no timetable to further relax regulations on the convertibility of the RMB under capital accounts.

 

Hu Xiaolian, deputy governor of the central bank and director of the State Administration of Foreign Exchange, said that although it is a firm goal of China's foreign exchange system reform, the rules for converting the RMB under capital accounts must be put forward step by step.

 

The current mission is to strengthen regulations governing the cross-border flow of capital and promote a more balanced international balance of payments, said Hu.

 

Renowned economist Xiao Zhuoji echoes the view of the central bank official. He said the policy suits the economic development in China and indicates that "we don't have to readjust the RMB exchange rate under the request or demand of others."

 

Xiao is a member of the Standing Committee of the CPPCC National Committee and professor of prestigious Beijing University.

 

"We must determine the exchange rate according to the principle of benefiting the country's economic development, no matter how big the pressure from foreign governments and media is," he said.

 

The reform for free convertibility of the RMB is a "fairly long process" that should be promoted phase by phase and step by step, he said.

 

(Xinhua News Agency March 3, 2006)