Regarding the reform of the RMB exchange rate regime, I would like to elaborate a little bit about the contents of the basket of currencies. As you all know, with authorization of the State Council, on July 21, 2005 China moved into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies.
A person of my generation is inevitably struck by the difference between what he was taught at university in the sixties and the reality he faced in the two following decades. In the lecture room central banking had just one pole, monetary policy.