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SAFE Chief Clarifies Goals of Exchange Rate Reform

It's an established mission of China to make the exchange rates of renminbi (RMB) more flexible and market-oriented, foreign exchange chief Hu Xiaolian told the China Securities Journal on Monday.

"Our exchange rates reform is not solely motivated to appreciate RMB yuan," said Hu, director of the State Administration of Foreign Exchange.

She said China would push forward the reform in an active but gradual manner.

"In the long term, we hope to reduce administrative restrictions and have market plays a dominant role. The business community, therefore, has to seize time to improve their product quality and competitive capability," she said.

With the influx of foreign capital into China and the quick building-up of the country's foreign exchange reserve, Hu said an impending task of the foreign exchange authorities is to help domestic enterprises better control foreign exchange risks and raise their capability.

(Xinhua News Agency July 12, 2005)

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