Official: China to keep RMB stable
( 2003-10-31 10:18) (Xinhua)
A senior official with the
People' s Bank of China, China's central bank, said here Thursday that China
will continue to adopt a sound monetary policy in order to maintain the
stability of its currency, the renminbi (RMB).
Mu Huaipeng, deputy director of the currency policy department under the
central bank, made the remarks while explaining the objectives and stance of
China's monetary policy at the fourth UK- China forum.
Mu said the objective of China's monetary policy is to keep the RMB stable
and boost the country's economic growth within a stable financial environment.
To realize the objective, China will, in the first step, hold to a sound
monetary policy principle and handle properly the relations between curbing
financial risks and boosting economic growth, he said.
Secondly, Mu said China will gradually liberate its interest rates so as to
accelerate the Chinese economy's integration into the world economy and to
realize that the market mechanism will play a major role in financial resource
allocation.
He said China will encourage financial institutions to make loans to farmers
and agricultural projects and to small- and medium-sized enterprises so as to
support the country's economic restructuring and expand domestic market demand.
Fourthly, he said China will adjust its monetary policy to encourage rural
finance development and provide funds to support agriculture upgrading and rural
development.
In the end, Mu said China will also coordinate its currency policy with
foreign exchange policy. This was aimed at realizing a general balance between
purchase and supply in the foreign exchange market, he said.
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