Renminbi rate likely linked with western “rescue plan”

Vice-director of PBOC,  Zhu Min said at Davos World Economic Forum, China was likely to have renminbi raised up, but would do so after the rescue plans realized by western countries to boost their economy. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Zhu says the present yuan’s rate should be treated as part of the economic “rescue plan”, therefore, even if tending  to raise yuan rate, China would see to it until the fulfillment of boosting measures adopted by western world.

<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China would follow other countries with decision made at last G20 Summit, to give up rescue package in its rate fine-tuned.  He stresses yuan’s rate is unable to safe the unbalance of world trade, however, China ought to be detached from over dependence on export-orientation.

Zhu Min indicates a stabled renminbi is benefit to the whole world other than china, and the present yuan’s rate maintained steady should be regarded as current “rescue plan”, the saying made to keep off western remarks which having imposed pressures upon China. China nowadays has little room for maneuver in yuan’s rate policy, and to link it with so called western “rescue plan” implies that it provides a time table to the adjustment of yuan’s rate, and renminbi will be certainly going upwards as promised beforehand, when developed countries having parted with the shadow of economic recession.