CRI NEWS

RMB Appreciation Rumors Groundless

2004-10-12 22:41:21 CRIENGLISH.com

Rumors that the RMB will be revalued upwards are unfounded and reflect a misunderstanding of China's current exchange rate policy. Setting the exchange rate is China's own choice.

Rumors that the RMB will be revalued upwards are unfounded and reflect a misunderstanding of China's current exchange rate policy.

A spokesman for the State Administration of Foreign Exchange says China has applied a managed floating mechanism, along with supply and demand forces, to control exchange rates since 1994.

They have investigated methods of improving this while preserving a reasonable, middle of the road standard for the currency.

Setting the exchange rate is China's own choice. The ability of the economy and society as a whole to cope with any changes must be considered. And the government wants to avoid any large swings.

The spokesman also points out that the stable RMB exchange rate benefits domestic economic development as well as the world financial markets.

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