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China's exchange rate reform successful on the whole (2) |
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10:31, July 25, 2007 |
Ning Dongli, macro-economic analysts with Orient Securities, described the trend of the Yuan exchange rate with " more flexibility, policy guidance, market fostering and more independence", and believes that "market is playing an increasing role in the RMB exchange rate formation mechanism."
As transaction structure improves, transaction entities increase and transaction instruments multiply, the rate can fluctuate at a wider range, said Zhu.
Reform brings new task
As the reform deepens, how to secure long-term and stable economic development and sharpen the competitiveness of economic entities has become a new task laying before enterprises, banks and administrative authorities, said Zheng Yang, vice director of the Shanghai branch of the State Administration of Foreign Exchange and head of foreign exchange department of the Shanghai headquarters of the People's Bank of China.
Zhang gave his measures: enterprises should continue to sharpen their awareness of exchange rate risk and take precautions, accelerate structural adjustment and internal management to make themselves more internationally competitive;
Commercial banks, while managing their own exchange rate risks, should strengthen foreign currency assets management and maintain enough liquidity, and on the other hand accelerate business innovation;
Administrative authorities should continue to push forward the exchange rate reform and create a better policy environment for enterprise and bank operations.
However, the key to final success of the reform lies in the transfer from driving the economy from outside to inside, experts stressed.
By People's Daily Online
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