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Snow Praises RMB Exchange Rate Reform

US Treasury Secretary John Snow said in Shanghai Wednesday China's renminbi (RMB) exchange rate reform in July was "very positive".

 

Snow said that the reform carried out in July was an important, even "historic" one.

 

Since July, China has taken measures to adjust the yuan's exchange rate on the basis of market supply and demand, with reference to a basket of currencies, and build a managed floating RMB exchange rate mechanism.

 

Snow said such measures are conducive to currency valuation through market factors.

 

Shanghai is the first stop in Snow's current China tour. He arrived here Tuesday afternoon, and visited the China Foreign Exchange Center and Shanghai Stock Exchange on Wednesday.

 

He said Shanghai has chalked up tremendous social and economic achievements over the years. He believes the financial market will play an even greater role in the Chinese economy in the future.

 

Snow left here for Chengdu Wednesday afternoon to continue his China tour. He is scheduled to be present at the meeting of the G-20 Finance Ministers and Central Bank Governors, which will convene in Beijing from October 15 to 16.

 

Snow and his Chinese counterpart Jin Renqing will co-chair the meeting of the Sino-US Joint Economic Commission on October 16.

 

(Xinhua News Agency October 13, 2005)

 

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