China to continue with yuan exchange rate reform - PBoC deputy gov
Thursday, November 4, 2004 11:01:59 AM
afxpress.com
BEIJING (AFX) - China plans further measures to reform the exchange rate, the official Financial News reported, citing Li Ruogu, deputy governor of the People's Bank of China, the country's central bank. Li was quoted by the newspaper as saying that the goal of the reform is to maintain the basic stability of the yuan at a balanced and rational level
"We have already made a lot of fundamental preparations and achieved active progress," in reforming the exchange rate mechanism, Li said
He said that the reform must be carried out with due consideration to the country's economic situation, international balance of payment, banking reform and the economic and financial situation of China's neighbors
China's central bank raised both benchmark one-year deposit and lending rates by 27 basis points last week, the first interest rate hike in nine years. The move triggered speculation that the government will soon revalue the yuan
Li said that the recent rate rise was a key policy decision to ensure a sustained, fast, balanced and healthy economic development
"In the next step, we will closely watch economic development; flexibly use monetary policy and steadily promote reform of a market-oriented interest rate," Li said |
