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Renminbi to Keep Stable

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)    

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