Chinese Premier Wen
Jiabao said Sunday China must uphold the principles of
independent initiative, controllability and gradual progress in
pursuing RMB exchange rate reform.
"By 'independent initiative,' we mean to independently determine
the modality, content and timing of the reform in accordance with
China's needs for reform and development," said the premier when
addressing the opening ceremony of the Sixth ASEM Finance
Ministers' Meeting, held in Tianjin,
a port city in north China.
In the exchange rate reform, the premier said, China should take
account of its possible impact on the country's macro-economic
stability, economic growth and job market, give consideration to
the state of the financial system, the level of financial
regulations, resilience of the enterprises and effect on foreign
trade and keep an eye on the economic and financial performance of
the neighboring countries and regions, and of the world as a
whole.
"By 'controllability,' we mean to properly manage the changes in
RMB exchange rate at the level of macro-regulations. We must push
forward the reform but always stay on top of the challenges, so as
to prevent fluctuations in the financial market and economic
instability."
"By 'gradual progress,' we mean to push forward the reform in a
step-by-step manner. We must take into consideration both the
present needs and the future development and guard against undue
haste."
"In short, we need to continue improving the RMB exchange rate
forming mechanism and develop an exchange rate system that is more
market-oriented and more flexible."
However, the premier said, since this reform involves a wide
range of areas and will have a far-reaching impact, it still
requires a great deal of preparation to help create an enabling
environment for all sides to sustain the possible impacts.
Such a responsible attitude and practice of China will
contribute to the stability and development of not only Chinese
macro-economy but also the economy of the surrounding countries and
the larger world, the premier said.
Stable RMB exchange rate in interests of all
Chinese Premier Wen Jiabao said Sunday that keeping RMB exchange
rate basically stable at a reasonable and balanced level is in the
interests of economic development not only in China but also in
neighboring countries and region as a whole.
Wen said maintaining the RMB exchange rate basically stable at a
reasonable and balanced level also contributes to the world
financial stability and expansion of trade.
"This point was well illustrated during the Asian financial
crisis in 1997, when the stable RMB helped alleviate the pain on
our neighboring countries and regions and contribute to economic
and financial stability and development in Asia and the whole
world,"?Wen said.
Policy suitable to national conditions
Chinese Premier Wen Jiabao said Sunday that China is entitled to
choose its currency (RMB) exchange rate mechanism and policy
suitable to its own national conditions.
"It is the common understanding in the world that every country
is entitled to choose the exchange rate mechanism and policy
suitable to its own national conditions," said Wen.
Back in the early 1990s, China set its targets and tasks for the
reform of RMB exchange rate mechanism, which is to gradually
establish a market-based and well-managed floating exchange rate
system so as to keep the RMB exchange rate basically stable at a
reasonable and balanced level, said the premier.
Over the past decade and more, China has done a lot on the
reform of the RMB exchange rate mechanism and made important
progress, he added.
Premier
Wen Delivers a Speech at the Opening?Ceremony of 6th ASEM
Finance Ministers' Meeting
(Xinhua News Agency June 26, 2005)
