| Abstract | the Renminbi has enjoyed a steady appreciation of around 3% against the US dollar since China unified its exchange rates in January 1994. In 1995, despite recent trade dispute with the US, strong recoveries in the developed economies would underpin China's export growth. Capital inflow would also maintain certain momentum in view of China's vast market potential and competitive cost structure. In the event, the Renminbi would remain largely stable; over the longer run, controls over the transactions of the Renminbi would be gradually relaxed as the ultimate goal of the foreign exchange reform is the full convertibility of the Chinese currency. |
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