Zhou Xiaochuan: RMB Exchange Rate Should not Be Dramatic

RMB exchange rate kept in a reasonable and stable equilibrium level, it should not be dramatic,said by Zhou xiaochuan of the people's bank of China when

 

Zhou Xiaochuan said, exchange rates should reflect the market supply and demand and the balance of international payments. Currently, considering the RMB exchange rate policy is a key factor of international financial crisis. The international financial crisis caused many negative impacts, produced a lot of uncertainty in the special period,so the policy and generally consider will be different. Generally speaking, people's bank will continue to improve the managed floating exchange rate system based on market supply and demand and with reference to a basket of currencies,and continue to keep the RMB exchange rate at an basically stable ,adaptive and equilibrium level according to the principle of initiative, controllability and progressive.

 

He pointed out that, at present, the progress of international financial crisis is unexpected, according to the circumstance, we known the situation is serious and the economic recession is obvious.In the background of economic globalization, the Chinese economy and the world economy is more than any previous stage, we must use Combination policy to cope with international financial crisis,on the one hand ,stimulating domestic economic revitalization to maintain fast yet steady economic development, On the other hand we should strengthen the international financial cooperation, make concerted efforts to overcome the crisis.

 

Zhou xiaochuan said from the statistical data of December of 2008, the policy of stimulating domestic economic growth has a preliminary results, but for the whole judgement of the situation we should Pay close attention to. the development and change of the economic situation.