China move to flexible Yuan gradually

Byzjx

Updated Thu, 09 Dec 2004 00:00:00 GMT

China will move gradually toward a flexible exchange rate. Premier Wen Jiabao said that loosening control requires macro-economic stability, and a sound banking system in the world's fastest-growing major economy.

Trading partners like the US, want China to alter the exchange rate system. They argue that the fixed rate gives Chinese exporters an unfair advantage.

China has always kept the world's interests in mind. During the 1997 Asian financial crisis, China maintained the RMB exchange rate under great pressure, making considerable efforts to maintain world economic stability.

    In the future, China will also take the global economy into consideration, while reforming its exchange rate system.