Except for an implicit devaluation of the Italian lira in January 1990, when that currency moved from the wide band to the narrow band, realignments ceased to be a characteristic of the system. In 1990, the remaining capital controls were eliminated by participating countries. German reunification required a tight monetary policy to counterbalance the large fiscal deficits generated by reunification.
We have made a big decision to change it and with resource input have already achieved evident progress. Meanwhile, we have conducted a series of supplementary reforms including enhancing accounting standards, reforming tax system, improving law and regulations and strengthening policy transparency. To a great extent, this has improved China’s investment environment and guaranteed the return on foreign capital.