Solemn Statement by the Spokesman of the People´s Bank
of China
The reform of the
RMB exchange rate regime has triggered widespread coverage and considerable
support from the media both at home and abroad. However, certain foreign media
has misled the public and even wrongly speculated that the revaluation of RMB
by 2 percent was only the first step in a series of adjustment, which could "lead
to expectations for further RMB revaluation by the People´s Bank of China in
the non-distant future".
To promote correct
understanding of the RMB exchange rate regime reform, the People´s Bank of
China is hereby making solemn statements as follows:
First, a
revaluation of RMB by 2 percent, effective in the beginning of the exchange
rate regime reform, does not in the least imply an initial move which warrants
further actions in the future.
Second, the 2
percent revaluation of RMB was calculated and conducted to maintain the RMB
exchange rate basically stable at an adaptive and equilibrium level. Such an
adjustment was determined considering the size of surplus and the needs in
restructuring of China´s foreign trade while at the same time taking into
account the resilience of the domestic enterprises to absorb the risks,
basically satisfying the needs to achieve a broad trade balance in goods and
services.
Third, the reform of the RMB exchange
rate regime must be proceeded in a gradual way. "Gradualism" is the principle
applied in the reform of the RMB exchange rate regime, rather than in the
adjustment of the RMB exchange rate. The reform is focused not on the
quantitative adjustment of the RMB exchange rate but on the improvement of the
RMB exchange rate regime.
The People´s Bank of China welcomes the
attention and support on the reform of the RMB exchange rate regime from all
walks of life, both at home and abroad, and is looking forward to responsible
and objective coverage of the reform based on correct understandings.
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