--- SEARCH ---
WEATHER
CHINA
INTERNATIONAL
BUSINESS
CULTURE
GOVERNMENT
SCI-TECH
ENVIRONMENT
SPORTS
LIFE
PEOPLE
TRAVEL
WEEKLY REVIEW
Learning Chinese
Learn to Cook Chinese Dishes
Exchange Rates
Hotel Service
China Calendar


Hot Links
China Development Gateway
Chinese Embassies


RMB Partly Convertible Under Capital Account

The Renminbi (RMB), the currency of China, has realized partial convertibility under capital account, and of the 43 capital trading categories classified by the International Monetary Fund, about half have no or very few restrictions, a senior official said Monday.

At the opening of HSBC's 14th central bank annual meeting, Wei Benhua, deputy director of the Chinese State Administration of Foreign Exchange (SAFE), said it is the long-term goal of China's reform of its foreign exchange (forex) to achieve complete convertibility of the RMB.

In 1996, the RMB became convertible under current account, and the opening of capital account is currently being advanced progressively.

Wei said China established cross-border capital flow in both directions, and trading volume under capital account has been expanding rapidly.

Complete convertibility under capital account is an issue that every country must face when its economy develops to a certain point and begins to participate in world cooperation and competition, he acknowledged. Especially when current account trading is open, the controlling efficiency on capital flow will decrease, and the opening of capital account has become inevitable in joining the global economy.

According to Wei, the goal of the Chinese government is to ease restrictions on cross-border capital trading activities in a selective and step-by-step way while effectively preventing financial risks, so as to gradually realize the convertibility of RMB under capital account.

With the launch of new measures regarding capital flow, he added, China's capital account will open further, so as to create good conditions for cross-border capital flow and the development of China's capital market.

(Xinhua News Agency November 9, 2004)

RMB Exchange Rate System to Be Improved
China Considers Easing Control over Capital Accounts: Official
RMB Expectations Drag Forex Savings Down
Vice Premier: Capital Accounts Must Be Opened Orderly
2008 Best Time for Convertible Yuan: Euro Father
Conditions Not Ripe for RMB's Total Convertibility: Dai Xianglong
Print This Page
|
Email This Page
About Us SiteMap Feedback
Copyright © China Internet Information Center. All Rights Reserved
E-mail: webmaster@china.org.cn Tel: 86-10-68326688