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Trade surplus rocketing brings pressure
(Xinhua)
Updated: 2005-07-28 07:06

Although China's trade volume ranks third in the world, the quality of and profits from the trade still remain a low level, the expert said.

Therefore, the RMB appreciation and the reform of the foreign exchange rating mechanism should help China to shrink its trade surplus and ease international pressure in the long run, the expert said.

The RMB yuan, which had been pegged to the US dollar at the rate of one dollar for 8.27 yuan over the past years, started to be traded at a rate of 8.11 to the US dollar last Thursday, according to an announcement from China's central bank. The pegging system is also being altered to refer to a basket of foreign currencies.

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