| Last updated at: (Beijing Time) Friday, November 16, 2001 |
SAFE Official: WTO Accession Speeds up Convertibility of RMB |
|
China's administration of foreign exchange will strictly abide by the WTO regulations, transfer step by step the government functions and work hard to create a favorable environment for foreign businessmen to invest in China and domestic enterprises to develop business with foreigners. Administrations of foreign exchange would sort out and revise the present regulations on the administration of foreign exchange in accordance with the requirement of the WTO.
|
|
 |
|
|
|
|
Administration of foreign exchange not key point
On the specific influence by the WTO entry to the management of foreign exchange, the person in charge said, on the one hand, China has made current items in RMB convertible. China's present system of administration of foreign exchange generally accords with the request of the WTO. Therefore, the administration of foreign exchange was not the key point of China's negotiations for the WTO accession. Besides, different from market access and tariff reduction in the service trade, there is no concrete commitment on clear schedule and scope of the opening of foreign exchange business.
Potential and profound influence inevitable
On the other hand, with the further opening of the Chinese market, especially the financial industry and service trade market, the WTO entry will inevitably bring about potential yet profound influence on administration of foreign exchange, he added.
Full convertibility of RMB: a long-term goal
When asked the relationship between the WTO entry and the opening of China's capital items, the person in charge answered that the WTO membership does not necessarily require a country to abandon capital control and realize full convertibility of capital items. In fact, a great majority of the developing countries or regions of the WTO members so far haven't had a complete opening of their capital items. China did not make any commitment on realizing the convertibility of capital items during the talks for the WTO entry. However, it is a long-term goal of China to promote convertible capital items in RMB and finally realize the full convertibility of RMB. China's accession to the WTO will, objectively, quicken its paces.
The official said that the administrations of foreign exchange recently would sort out and revise the present regulations on the administration of foreign exchange in accordance with the requirement of the WTO.
The departments will intensify the supervision on the statistics of international payment and enhance the ability of quick response to abnormal situation of international payment. They will improve the ways of administration, simplify and cancel administrative exam and approval, weaken pre-administration and strengthen post-supervision and examination.
Free Convertibility of RMB is a Long and Medium-Term Goal
Realization of free convertibility of renminbi (RMB) under the capital account is a long and medium-term goal, which should be carried forward by taking cautious and practical attitude and proceed in an orderly way and step by step.
According to the governor of People's Bank of China (PBOC), after China enters the WTO, the degree of difficulty and cost of regulation on foreign capital accounts will increase with the opening of the domestic financial market. All these require that China should make study on the convertibility of RMB under the capital account as soon as possible.
|
By PD Online staff member Du Minghua
|
|
|
|