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China vows to keep yuan basically stable
(Xinhua)
Updated: 2005-03-05 10:27

Chinese Premier Wen Jiabao reiterated here Saturday the renminbi exchange rate would be kept "basically stable" at a rational equilibrium in 2005.

"We will push forward the reform of the exchange rate determination mechanism step by step," Wen said in his government work report delivered at the opening meeting of the Third Session of the 10th National People's Congress (NPC), China's top legislature.

China's central bank announced earlier the country turned in "double surpluses" -- in both current and capital accounts -- in 2004. In breakdown, surpluses from current accounts -- which track trade, income from investments and overseas workers, as well as one-way transfers such as foreign aid -- reached roughly 70 billion US dollars last year. Capital and financial account surpluses reached about 112 billion dollars.

Top Chinese leaders and central bank authorities, however, have repeatedly noted that the country should first ameliorate its financial system before implementing a flexible exchange rate mechanism.

Some developed countries have said that China has held the yuan artificially low, giving China's exporters an "unfair advantage" and contributing to its trade surpluses.



 
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