Wednesday, April 21, 2004

BonoboLand - Renminbi Float

BonoboLand - Renminbi Float
by Edward Hugh

Here it is, the news you've all been waiting for: China is planning to introduce flexibility into its exchange rate system, allowing the renminbi to fluctuate in a wider range against a basket of foreign currencies. The FT has been talking to Guo Shuqing, administrator of China's foreign exchange reserves.

"China is .....gradually lifting capital controls, partly to relieve upward pressure on the renminbi and partly to pursue a goal of having a 'basically' convertible currency and open capital account in five or six years, said Mr Guo. However, he cautioned, that 'we can never reach a point where the capital account is totally free."

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