China will not make any exchange rate reforms amid the current level of speculation on the Renminbi (RMB), said Premier Wen Jiabao in Vientiane on Sunday.
After meeting with leaders at the meeting of Association of Southeast Asian Nations (ASEAN) he told reporters that the government is using four criteria for the decision:
The first is that any changes must meet certain conditions, and the most important are a stable macroeconomic environment, a sound market and a healthy financial system.
The second is that there must be an appropriate plan to keep the RMB stable at a "reasonable and balanced" level.
The third relates to the timing of any policy. "To be honest, the more speculations are made, the less chance we will have to take the measure," said Wen.
The last is the influence of RMB reform on China's economy as well as the economies in the region and the world.
"China is a responsible country. In the financial crisis in 1997, we maintained stability of the RMB and made due contributions," said Wen.
At the weekend, Li Ruogu, deputy governor of the , said that there was no timetable for reform of China's exchange rate mechanism.
He made the remark at the 2004 APEC Finance and Development Program Forum in Sanya, Hainan Province. Speculation on the RMB exchange rate will not benefit reforms of the exchange rate or economic development, Li added.
(China Daily, CRI.com November 29, 2004)
