The value of China's currency will remain stable this year, the
director of the State Administration of Foreign Exchange (SAFE)
said.
"(We will) keep the foreign exchange rate of the Renminbi
basically stable at a level of reasonable equilibrium," Guo
Shuqing, who also serves as vice-governor of the central ,
told officials of the bank and SAFE at their three-day joint annual
conference, which closed Thursday.
Guo also reiterated his pledge to improve the formation
mechanism for the currency's exchange rate.
He said SAFE will work on the establishment of market makers in
foreign exchange markets.
Guo also said foreign exchange will see "selectively" expanded
channels for capital outflow to encourage strong Chinese
enterprises to increase their international operations.
But he said SAFE will improve its control over the flow of
short-term capital in and out of the country. Such capital is often
called "hot money" and is aimed at speculative profits.
(China Daily February 13, 2004)????