|   Home   |   News   |   Blueprint   |   Theory   |   Leadership   |   Deputies   |   Commentary   |   Achievement   |   Readers   |   Video/Audio   |   Photos |
Market to determine exchange rate: PBOC
By Han Lei (China Daily)
2007-10-19 07:39


The market will play a bigger role in determining the exchange rate of the yuan and eventually make it fully convertible, the country's top banker said yesterday.

"Supply and demand forces in the market will play a bigger role in setting the yuan's rate," Zhou Xiaochuan, governor of People's Bank of China (PBOC) said on the sidelines of the Party congress.

Talking about recent complaints from European countries over the renminbi exchange rate, Zhou said worries may arise from the rapid increase in China's trade surplus with EU. He also cited the weakening dollar, which has exerted upward pressure on the euro's value, before expressing his sympathy for those affected.

A vice-governor of PBOC will meet EU's central bankers to discuss their concerns at the International Monetary Fund and World Bank meetings in Washington next week, he said.

He went on to say the free convertibility of the yuan under capital accounts will be eventually realized. However, Zhou said China has not set a timetable for free convertibility, adding that his agency will adjust the pace according to feedback.

On the domestic economy, Zhou said his agency would take a more aggressive approach in preventing it from overheating and curbing inflation.

"The economic temperature is somewhat hot, the consumer price index relatively high, and the speed of growth relatively fast compared to last year and the year before that," he said.

Zhou pledged to use monetary tools to keep the economy on track, including the interest rate and exchange rate, adjustment in bank reserve ratios, and open market operations.

When asked if a hike of 27 basis points in each of the central bank's interest rate adjustments this year was enough to produce a marked effect, Zhou said: "There is a degree of freedom on the scale of change when deciding to choose a monetary tool. For example, the interest rate could change by 27 or 54 basis points, while the bank reserve ratio shift may be 1.0, 0.5 or 0.25 percentage points."

He pledged further measures to absorb liquidity from the economy.

Calling excess liquidity a global issue, he said the monetary policies adopted by his agency have been quite useful in mopping it up. "However, with conditions changing, we could beef up our efforts," he said.

In the medium and long term, the global community must manage to put an end to the imbalance in the world's economy so as to root out this problem, he said.

Zhou attributed excess liquidity in the country to rapid economic development, rising incomes, the central bank's release of cash for foreign currency brought in by the surging trade surplus and increasing foreign investment.

On surging asset prices in China, Zhou said monetary policy does not apply to asset prices directly. However, in times of tremendous volatility, monetary policies could be of some help, reducing the impact on the real economy.

On the entry of Taiwan's financial institutions to the mainland, he said the biggest hurdle was separatist activities.

A memorandum of cooperation and exchange between the central banks and other agencies across the Taiwan Straits should precede the opening of the mainland market, but separatists had made the exchanges impossible, he said.

(China Daily 10/19/2007 page5)

 



  Hu Jintao -- General Secretary of CPC Central Committee
Copyright 1995-2007. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form.
主站蜘蛛池模板: 国产精品v欧美精品∨日韩| 日本亚州视频在线八a| 免费看一级特黄a大片| 992tv在线| 天堂在线www天堂中文在线| 久久久久久亚洲精品成人| 欧美成人精品福利网站| 午夜视频久久久久一区| 国产精品大bbwbbwbbw| 在线a亚洲视频播放在线观看 | 久久99精品一久久久久久| 欧美丰满熟妇XXXX| 人妻无码视频一区二区三区| 老熟妇乱子伦牲交视频| 国产成人手机高清在线观看网站 | 亚洲日韩一页精品发布| 精品久久中文字幕| 国产偷国产偷亚洲高清在线| 私人影院在线观看| 夜色福利久久久久久777777| 中国凸偷窥XXXX自由视频| 日韩专区第一页| 亚洲午夜无码久久| 波多野结衣33分钟办公室jian情| 午夜天堂精品久久久久| 蜜臀精品国产高清在线观看| 国产激情视频在线观看首页| 99精品国产第一福利网站| 性美国xxxxx免费| 久久久久国产午夜| 最好看的免费观看视频| 亚洲导航深夜福利| 狠狠干.com| 免费无码一区二区三区| 老司机福利精品视频| 国产免费无码av片在线观看不卡| 青青热久久久久综合精品| 国内精神品一区区| eeuss在线兵区免费观看| 怡红院免费全部视频在线视频| 久久久久久99|