Recently, some foreign friends have showed their concerns about the potential overheating of the Chinese economy due to the expansion of money supply as a result of the rapid increase of foreign exchange. I would like to reassure these friends by recalling our experience during the Asian financial crisis.
At that time, China successfully maintained steady economic growth while keeping the RMB exchange rate basically stable. Today, we are confident that we will be able to prevent great ups and downs in the national economy while keeping the external value of our currency basically stable. China’s exchange rate reform is still underway.