It is reported on RMB exchange market in Shanghai Wednesday there has been seen a slight rise in the exchange rate of RMB for a decreased dollar demand. One dollar is converted into 8.2776 yuan, a bit less than the 8.2777 yuan level seen in Tuesday.

As China's entry into WTO enters a count-down period, the worry about a possible depreciation of RMB increases abroad. But financial experts firmly believe that RMB will not devalue within several years to come.

On the contrary, there is the space for a rise in value of RMB, according to WTO experts. In their view, RMB's appreciation and depreciation will be determined by its domestic factors though China faces pressure from its expected entry into WTO. As China sets its economic objective for a full opening up of economy to absorb more foreign capital from abroad to strengthen domestic competitive force BMB has no pressure of devaluation in the coming several years. Conversely, it has the space and the demand for appreciation.

According to Dai Xianglong, governor of People's Bank, China's entry into WTO is another positive step taken to further open up, merge China into the mainstream of the world economy, provide more trade and investment opportunities for domestic enterprises, and further strengthen people's confidence in Chinese economy and its currency. He stressed, after its entry into WTO, China will achieve good international payment balance and stable exchange rate of RMB. It is expected that this year's export and investment will both grow and that after China's entry into WTO foreign investment will continue to increase.

China's exchange rate of RMB is closely linked with the country's market demand for supply amount of the money. Following a floating exchange rate it is still well managed. From balanced international payment China's foreign exchange rate has all along remained stable.

However, a stable outside economic environment and international currency system is indispensable for keeping RMB in good stability. Serious concern should be duly given to such currencies as Japanese yen with a slump market and great possibilities for a sharp depreciation of US dollars to affect market stability of RMB.