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China plans gradual move to flexible Yuan
(Xinhua)
Updated: 2004-12-09 15:41

China will move gradually toward a more flexible exchange rate. Premier Wen Jiabao said that loosening control requires macro-economic stability, and a sound banking system in the world's fastest-growing major economy.

Wen spoke at the 7th China-EU Summit in the Hague. Trading partners like the US, want China to alter the exchange rate system. They argue that the fixed rate gives Chinese exporters an unfair advantage.

But Wen said China has always kept the world's interests in mind. During the 1997 Asian financial crisis, China maintained the RMB exchange rate under great pressure, making considerable efforts to maintain world economic stability.

In the future, Wen said China will also take the global economy into consideration, while reforming its exchange rate system.

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