Free Chinese Lesson - Market to have bigger say in yuan rate

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Market to have bigger say in yuan rate

www.chinanews.cn 2005-03-07 09:39:18

(Source: China Daily)

BEIJING, March. 7 - China will maintain the current foreign-exchange
system but will allow the market to play an increasingly larger role in
determining the renminbi's rate, according to the nation's
foreign-exchange chief.
Guo Shuqing, director of the State Administration of Foreign Exchange
(SAFE), said more instruments will be introduced for trading this year;
and SAFE would also consider permitting instruments that enterprises can
use to hedge risks in the foreign exchange market.
Guo and other senior economic officials have said the yuan's exchange
rate will be allowed increasing flexibility as the country reforms its
exchange-rate system.
Meanwhile, capital injection and bringing in strategic investors are
among options for China's financial authorities in their attempt to
recapitalize the Industrial and Commercial Bank of China (ICBC), he said
at the sidelines of the National Committee of the CPPCC meeting yesterday.

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