Wen Jiabao: RMB Will Be More Two-Way Fluctuation.

In response to a reporter's question in March 14th, Premier Wen Jiabao of the State Council said that the two-way fluctuation of the non deliverable forward in the Hongkong market shows that the RMB exchange rate may be close to the equilibrium level. He said he would continue to increase the intensity of foreign exchange reform, especially in a relatively large way.

On March 14th, the eleven session of the five session of the National People's Congress held a press conference in the Great Hall of the people. Wen Jiabao met with Chinese and foreign journalists and answered questions.

In reply to Sino US economic and trade relations and China's trading system reform During the problem, Wen Jiabao said that the proportion of China's current account for GDP in 2011 has reached 2.8%, less than 3% of the internationally recognized standards. "In other words, China has achieved a basic balance in the balance of payments and trade in goods."

In connection with the issue of RMB exchange rate, he said that the effective exchange rate of RMB has risen by 30% since the reform in 2005. He cautioned that since September of last year, the NDF in Hongkong market began to fluctuate in two directions. "This tells us that China's RMB exchange rate may be close to equilibrium."

In March 14th, the central parity of RMB against the US dollar was 6.3328, since March this year. US dollar exchange rate Continue to fall, a total of 409 basis points, repeat the trend of the fourth quarter of last year. On the same day, the 1 year RMB non deliverable forward contract in 6.3390/6.3440 position, few appreciation expectations.

Wen Jiabao believes that cooperation is the solution to the Sino US trade frictions frequently caused by exchange rates and other issues. "Cooperation is better than confrontation."

He disclosed that in 2009, 2011 and the United States two times. President During the Obama meeting, he put forward proposals for Promoting Sino US economic, trade, finance and investment package. The proposal includes further development of two-way trade between China and the United States, China's expansion of imports of us products, the opening of US exports to the United States, the lifting of restrictions, the strengthening of two-way investment, the creation of favorable conditions for investment and investment protection by the two countries, and strengthening of bilateral cooperation in high-tech fields such as new energy, new materials, energy conservation, environmental protection, aerospace and aviation.

Wen Jiabao also revealed that China will invest in the construction of American infrastructure, expand the employment of American workers, and link infrastructure construction with financial cooperation.

He said that the above recommendations have been studied between China and the United States. "Along the way of cooperation, Sino US trade will embark on a healthy road of sustained development."