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)