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China to keep yuan basically stable this year
(Xinhua)
Updated: 2005-07-20 10:35

China's central bank said Tuesday it will continue to keep the exchange rate of Renminbi, China's currency, basically stable at a reasonable and balanced level in the second half of this year.


A resident put money into the wallet before an exchange rate poster in Shanghai in this June 15, 2005 photo. China said it will keep the renminbi exchange rate basically stable this year. [newsphoto]
In a press release issued after a meeting by heads of the bank and its provincial branches, the bank said it is one of its major tasks in the six months to deepen the reform of its foreign exchange administrative system, and push forward the reform of RMB exchange rate mechanism and keep the RMB exchange rate basically stable at a reasonable and balanced level.

China must uphold the principles of independent initiative, controllability and gradual progress in pursuing RMB exchange rate reform in accordance with its own needs of reforms and development, the bank said.

Zhou Xiaochuan, governor of the bank, made a speech at the two-day meeting, which concluded Tuesday in Hohhot, capital of north China's Inner Mongolia Autonomous Region.

On other major tasks it faces in the coming months, the bank said it will continue to implement its prudent monetary policy and maintain stable growth of money supply.

The bank said China's economy has been in a good shape since early this year with new progress being made in economic restructuring.

The economy is continuing to move to the envisaged direction of the macro-economic control, said the bank.

But it warned the deep-rooted contradictions and problems that hinder the sustainable, rapid and healthy development of national economy have not yet been resolved.

The bank called for close attention to the trend of economic development.



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