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CHINA / National

China to gradually make capital account convertible: official
(Xinhua)
Updated: 2006-04-12 19:24

China is pushing forward its currency Renminbi (RMB)'s capital account convertibility gradually and in a stable manner, said an official with the State Administration of Foreign Exchange (SAFE), ruling out both an adventurous leap and conservative cautiousness.

Li Dongrong, deputy director of the SAFE made the remark here recently at a working conference held by SAFE on foreign exchange management.

The rules for converting the RMB under capital accounts must be put forward step by step, Li said.

The current mission is to strengthen regulations governing the cross-border flow of capital and promote a more balanced international balance of payments, according to the conference.

RMB convertibility under capital accounts is a complicated issue, said SAFE Director Hu Xiaolian in March. It is a process that should be adapted to China's economic development, capability of macro-control and financial regulation, the maturity of financial markets and the risk management capability of market players, Hu said.

"There is no timetable for China's RMB convertibility under capital accounts," said Hu.

 
 

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