Vice Finance Minister Li Yong ruled out Friday that China will
adopt a floating currency system in the near future.?
Speaking at the 38th annual meeting of the Asian Development
Bank (ADB) in Istanbul, Li said there is no timetable now for China
to adopt a floating currency system since the upward pressure is
not strong.
"I feel the pressure is not from the outside but from domestic
needs," he said. "Establishing market mechanisms and financial
sector reforms are prerequisites for floating RMB."
China will take into account the impact of any RMB reform on
regional and global economies, he said.
"I urge them not to do such speculation (on a possible
revaluation of the RMB). They need patience," Li said, adding China
shares other countries' concern about imbalances that threaten the
world economy.
He said the nation will spend part of its foreign exchange
reserves?on supporting its financial reforms. "China will
spend the necessary resources to support reforms," Li said, citing
China's past decision to inject capital into state-run banks as
examples.
"One big concern to me is that too much hot money is flowing
into China," Li said. However, a soft landing is "certainly
achievable," he added.
"China will strengthen and improve macro-economic management and
will continue its macro-economic adjustment, which is so important
for a steady growth," he said.
About 3,000 delegates from ADB members, private financial groups
and nongovernmental organizations attended the three-day meeting,
which concluded Friday.
ADB's performance in 2004 and coordination efforts of member
states in aid projects were major issues discussed at the
meeting.
The 63-member ADB is a pan-Asian multilateral financial
institution that lends aid funds to developing countries in Asia
with a platform to reduce poverty in the world's largest and most
populous continent.
(Xinhua News Agency May 7, 2005)