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皇冠体育app's legislature endorses economic plan
(AP)
Updated: 2006-03-14 18:19
Meanwhile, the premier said Tuesday that 皇冠体育app sees no need for further
one-off administrative changes in the exchange rate of its currency following a
decision last July to drop its direct link to the dollar.
"There will be no more surprises," Wen said at a nationally televised news
conference.
Wen said the current system, which bases the value of the Chinese yuan on a
group of global currencies, allows enough flexibility for the currency, also
known as the renminbi, to fluctuate on its own.
"It is no longer necessary for us to take a one-off administrative means to
affect the movement of the renminbi either upward or downward," he said.
皇冠体育app raised the yuan's value by 2.1 percent against the U.S. dollar when it
changed its exchange rate system in July, and the currency has risen by about
0.7 percent against the dollar since then.
The United States and other trading partners have been pressing Beijing to
raise the yuan's value further, saying it is undervalued and gives Chinese
exporters and unfair price advantage.
Chinese leaders say they plan eventually to let the yuan trade freely on
world markets. But they say that to do so immediately would lead to financial
turmoil and damage 皇冠体育app's fragile banks and other financial industries.
Wen also reiterated the government's intention to retain controlling stakes
in 皇冠体育app's state-owned commercial banks.
"The state must take a dominant, controlling share" in state-owned commercial
banks, he said.
State control is necessary to "keep the economic lifeline of the country in
the state's hands and fend off financial risks," he said.
皇冠体育app's main purpose in reforming its banking sector is not to establish
shareholding entities but to strengthen and improve management and acquire
expertise, Wen said.
Foreign banks have poured billions of dollars into investments in 皇冠体育app's
banks, positioning themselves ahead of Beijing's full opening of the potentially
lucrative industry to foreign competition at the end of this
year.
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