- CNTV English - CCTV News

China stresses gradual RMB rate reform

06-26-2010 13:13 BJT

Watch Video

Play Video

A week before the G20 Summit in Toronto, China announced it would allow a more flexible exchange rate for its currency.

It's the nation's first announcement to speed up the reform of the yuan in two years. But it also made no secret that it would not allow the yuan to appreciate too fast.

On June 19th, China's central bank announced it will proceed with reform of the yuan's exchange rate regime to enhance flexibility.

That ends the yuan's nearly two-year peg to the US dollar. But the central bank ruled out a one-off major appreciation.

Chinese Foreign Ministry spokesman Qin Gang reiterated later that the reform will be a gradual process.

Qin Gang, Chinese Foreign Ministry spokesman, said, "What I would like to emphasize is that, we push for the reform of RMB exchange rate mechanism and the flexibility of RMB exchange rate in an independent, controlled and gradual manner, and this position has been clear and remains unchanged."

Most economists also believe any appreciation in the yuan will be slow and modest. They say greater currency flexibility also suits China's own need for a more balanced economy.

Sir Howard Davies, Director of London School of Economics, said, "If you look at the overall shape of the Chinese economy, it excessively relies on exports. And domestic consumption is still weak with high bank savings. One response is to appreciate the yuan."

China's policy decision to peg it's yuan to the dollar was criticised as being undervalued, and giving Chinese exporters an unfair advantage.

The new move is still unlikely to convince critics of the depth of the reform. But China insists that its monetary policy should not be politicized. And the appreciation of the yuan alone cannot help solve the problem of huge trade deficits in other countries.


Editor:Zhang Pengfei |Source:

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program