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Central Bank Governor Reiterates Stable Yuan

The exchange rate of the RMB should be stable, and there is no strong reason to have any sudden change, said Zhou Xiaochuan, governor of the , in Hong Kong Thursday.

Attending the sixth Distinguished Lecture held by the Hong Kong Monetary Authority, Zhou Xiaochuan said that current exchange rate regime is suitable for China's economic situation. It is an effective exchange rate regime and is performing well.

However, in the long term, the reform to the exchange rate regime has never been stopped in China. But the reform must be gradual and should be along a proper path, said the governor of China's central bank.

Regarding the opening of RMB business in Hong Kong commercial banks, Zhou said that it should be differentiated between RMB business and offshore RMB center. With the closer economic ties between the mainland and Hong Kong, the study on opening RMB business in Hong Kong has entered a progress of serious study by the People's Bank of China and related departments.

But he noted it is a very complicated question and needs further careful study.

(Xinhua News Agency September 19, 2003)

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