China will introduce no more unexpected changes in reforming the exchange
rate of its currency, the RMB yuan, Chinese Premier Wen Jiabao announced in
Beijing yesterday.
"There will be no more surprise," said Wen at a press conference in the Great
Hall of the People in downtown Beijing, atthe end of the national legislature's
annual session.
Such practice as making the RMB exchange rate fluctuate upward or downward by
administrative means and once and for all will no longer exist, said the
premier.
While meeting the press on the same occasion last year, the premier said that
China would take unexpected moves regarding the RMB exchange rate.
In July, the country announced it had abandoned its longtime practice of
pegging the RMB to the U.S. dollar, and the RMB yuan has since appreciated
against the dollar by a margin of nearly 3 percent.
Wen said efforts will be continued to further improve the RMB exchange rate
system, expand the capacity of its foreign currency market and enhance the
flexibility of the RMB exchange rate.
"Based on the current RMB exchange rate system, there is room for the RMB
exchange rate to fluctuate on its own. Such practice as making the RMB exchange
rate go up or down by administrative means and once and for all will no longer
exist. There will be no more surprise," he said.