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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