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RMB exchange rate approaching equilibrium

0 Comment(s)Print E-mail Xinhua, March 14, 2012
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The real effective exchange rate of Renminbi may have reached its equilibrious level after rising by 30 percent since China launched the exchange rate reform in 2005, Chinese Premier Wen Jiabao said Wednesday.

The exchange rate of yuan in the Hong Kong markets for non-deliverable forwards have started to float in both directions since last September, Wen told a press conference after the conclusion of the annual parliamentary session. [More about the press conference]

"That indicates the real effective exchange rate of yuan may have reached its equilibrious level," said the premier.

Regarding the exchange rate of yuan, an issue of high interests to the United States, Wen said that China would continue to advance exchange rate reform to have yuan move in both directions by a larger margin.

He reiterated that China would stick to the principles of the Doha Round to facilitate free trade and oppose trade protectionism.

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