An official with the People's Bank of China (POC) said on Friday
that some analyses made by the International Monetary Fund (IMF) in
its staff report for 2005 Article IV: Consultation with China, does
not reflect latest developments.
The IMF published the report on November 18, the second issue
since China resumed its legal status in the organization in
1980.
According to Article IV of the IMF convention, the IMF consults
with all member governments regularly to learn about their
macro-economic operations and monitor their economic policies.
The official said that the Chinese government has held annual
consultations with the IMF since 1980. The report, written by IMF
staff following the consultation, reflects the judgment and views
of IMF staff on the economic and financial situation in relevant
countries.
But because statistics used in the report are from before July
2005, some analyses might have to be updated, the official
said.
Talking about China's macro-economic and financial situation,
the official said that China's economy has been growing stably and
rapidly in general, but some problems still exist, including
overactive fixed-asset investment growth, imbalanced imports and
exports, increasing trade disputes and challenges brought on by
forex reserve growth.
The central bank will continue with its monetary policies,
enhancing structural adjustment through marketization and pushing
forward reforms on Renminbi valuation.
There has been no big change in China's economic development and
finance market, the official said.
As for China's exchange rate mechanism reform, he said that
China made an important step and substantive progress in this
regard on July 21, 2005.
Generally speaking, this reform was smooth, and from the global
reaction, the result was positive and objective, he said.
Keeping the exchange rate basically stable at a reasonable and
balanced level and the establishment of a manageable floating
exchange rate regime on the basis of market supply and demand are
China's persistent direction and goal of reform, he said.
"This is a process of gradual advancement and improvement," he
said.
China will continue to advance the exchange rate reform with the
principles of independent initiative, controllability and gradual
progress, and the reform will also proceed from the necessity to
maintain the development and stability of China's economy and
finance, the official said.
He said that China will further promote reforms to produce an
RMB exchange rate mechanism that is more flexible to changes in
market demand and supply, and the government is willing to consider
the advice and suggestions of various parties.
On July 21, China's central bank announced that China's
currency, the RMB, would be traded at a rate of 8.11 to the US
dollar. The yuan to US dollar pegging system was removed, and yuan
valuation based on a basket of foreign currencies.
(Xinhua News Agency November 18, 2005)