Foreign Exchange News
- RMB appreciation not to change trade pattern between China, selected countries
Date: 26-Jan-2007 Sources: (Shenzhen Daily)
An appreciating RMB will not change the trade pattern between China and other countries, Xie Fuzhan, head of the the National Bureau of Statistics (NBS) said at a press conference Thursday.
Xie said the RMB has appreciated gradually against the U.S. dollar since China launched the foreign exchange rate reform on July 21, 2005, but China's trade surplus with the United States has not decreased.
Moreover, China still has a trade deficit with neighboring countries including Japan, the Republic of Korea and the ASEAN (Association of Southeast Asian Nations) countries, said Xie.
'The exchange rate is a factor that influences international trade, but it is not the only factor,' said Xie.
The value of the RMB yuan hit a new high on Thursday with a central parity rate of 7.7735 yuan to the dollar, according to the Chinese Foreign Exchange Trade System.
It is the eighth high for the RMB since the beginning of the year. The RMB has risen over four percent since the forex rate reform.
China will continue to uphold the principles of 'independent initiative, controllability and gradual process' in pursuing RMB exchange rate reform, said Xie.
The principles, set out at the beginning of the reform, indicate that China will independently determine the content and timing of reforms in line with its needs, take account of possible impact on the country's economy and push forward the reform in a step-by-step manner.
Sponsor Results:
