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Wrong timing for adjusting the RMB

www.chinanews.cn 2005-01-27 13:49:33

Chinanews, Jan. 26 - Mr. Li Deshui, director of China's National Bureau
of Statistics, said yesterday that, for now, it was not the right time to
adjust the RMB exchange rate. China needed more time to prepare for a
much more flexible exchange rate policy. He also pointed out that raising
interest rates was not possible for now.
Li Deshui said that it was necessary to consider the domestic, regional,
and global situations when adjusting the RMB exchange rate. He also
warned that hot money would be wasting their time to speculate on any RMB
appreciation.
He pointed out that China must consider the potential effects on
Southeast Asian Countries and the global economy whenever the Chinese
government wanted to carry out any adjustment of its exchange rate policy.
As to the prospect of China raising its interest rates this year, Li
Deshui said that adjustments of interest rates must depend on the
economic conditions. At present he cannot see any reason for China to
immediately raise interest rates.

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