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HK Report: IMF Asked China to Float Yuan Later This Year
Chinese Premier Zhu Rongji revealed during a meeting with Hong Kong tycoons last week that the International Monetary Fund (IMF) has asked China to allow the yuan to float later this year or early next year, a press report said Monday.
Zhu in a meeting with a delegation of business tycoons from Hong Kong asked members their opinions regarding the IMF request that China should allow its currency to float in the fourth quarter of this year or the first quarter of next, the independent Hong Kong daily Ming Pao said.
Premier Zhu Rongji was said to be surprised when property tycoon Li Ka-shing, a member of the delegation, told him the possible impact on the Hong Kong dollar of such a move would be equivalent to "an earthquake or a volcanic eruption," the daily cited an unidentified source as saying.
Zhu then proposed the Hong Kong government should study the matter and submit a report to him, the daily said.
The source also pointed out China's move to float its currency will ``depend largely on China's economic strength itself and will not be from the pressure of the IMF.''
The newspaper said the issue will be one of the key items to be discussed at the summer seaside resort of Beidaihe where members of the Chinese top leadership meet to discuss major policies.
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