The total volume of China's import and export in 2004 is expected to exceed US$1, 200 billion to make China the world's third largest country in trade, said Li Ruogu, deputy governor of People's Bank of China (PBC) in Sanya, south China's Hainan Province on November 28.

The exchange rate of Renminbi (RMB) will remain stable at a generally rational, balanced and stable level. The regime of RMB exchange rate will be further reformed but there is no such a timetable since the duration needed for the reform is really unknown.

Li made the remarks at the 2004 forum of the APEC Finance and Development Program (AFDP) held in south China.

Li reckoned, now in terms of the exchange rate of Renminbi, there exists forces or acts of speculation, which are impossible to be completely prevented. But it is not hoped that people, whether at home or abroad, speculate Renminbi because it is of no good for the reform of China's exchange rate mechanism or its economic development.

Since China has not yet liberalize its capital account, it has strengthened efforts in cracking down on money-laundering and illegal private banks just in order to prevent those abnormal and unhealthy acts and to ensure a stable economic development.

Li said, China's central bank will pay close attention to the orientation of the economic and financial development and take necessary measures according to the situation.

The central bank will gradually ease a number of restrictions, well control that should be regulated and liberalize that should not. But rational and necessary regulations which are needed for the time being must be continued.

By People's Daily Online