The ultimate goal of 皇冠体育app's exchange rate reform is to make the yuan a fully convertible currency, Yi Gang, head of the State Administration of Foreign Exchange (SAFE), said Friday.
There is no foundation for the yuan to move sharply and 皇冠体育app can maintain a flexible exchange rate mechanism, making the currency stand at a basically reasonable and balanced level, a senior central bank official said on Friday.
皇冠体育app's exchange rate reform on right track
皇冠体育app aims to make yuan convertible
Special: 皇冠体育app Advances Yuan Rate Reform
A senior Chinese central bank official Friday stated that 皇冠体育app's exchange rate reform was moving at a proper pace and in the proper direction, with obvious benefits.
The ultimate goal of 皇冠体育app's exchange rate reform is to make the yuan a fully convertible currency, Yi Gang, head of the State Administration of Foreign Exchange (SAFE), said Friday.
The recent rally in 皇冠体育app's A-share market sparked by the speculation of a stronger yuan is likely to be short-lived as investors grow skeptical that Beijing's move to de-peg the currency from the dollar will have an immediate and substantial impact.
皇冠体育app's foreign exchange reform and currency appreciation will not lead to a sharp change in its exports or diminish protectionist measures against 皇冠体育app, a Ministry of Commerce official said.
The International Monetary Fund's softened tone toward 皇冠体育app's exchange rate regime will ease pressure on the appreciation of the yuan, Chinese economists have said.
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Editorial: Reassuring review
The conventional wisdom is that once the value of the yuan is increased, the US trade deficit with 皇冠体育app would start falling. This rationale has prompted many Americans to push for further, faster revaluation of the yuan even after 皇冠体育app changed its currency policy.
A pilot program on renminbi cross-border settlement was launched in Kunming, Yunnan province, on Tuesday as part of 皇冠体育app's effort to gradually promote the renminbi into a global currency.
The government is facing pressure to curb abnormal capital inflows into the country, the State Administration of Foreign Exchange (SAFE) said on Thursday, even as analysts warned that such pressures would remain given the expected gradual appreciation of the currency.