Fifth, we will enhance macro-prudential management and the guidance of market expectations to keep the RMB exchange rate basically stable at an adaptive and equilibrium level. III. We will steadily advance the reform of foreign exchange management and enhance the liberalization and facilitation of cross-border trade and investment China’s current account achieved full convertibility in 1996.
Since the beginning of this century, we have been steadily moving ahead with the liberalization of our capital account, which has become highly convertible according to international standards. The capital account represents cross-border capital and financial transactions, which mainly fall into three categories, i.e., crossborder direct investment, cross-border securities investment and cross-border lending/borrowing, involving cross-border trading, currency exchange and cross-border inward/outward remittance.