Since the beginning of the second quarter this year, external trade has posted some steady growth. There is a significant inflow of capital and our balance of payments is in a healthy position. Therefore the BIS Review 12/1997  -3-  exchange rate of the renminbi, which is determined by the market, will remain stable.
The renminbi, for all intents and purposes has become fully convertible in the current account. We are in advance of our schedule in satisfying the requirement stipulated in Article VIII of the IMF Articles of Agreement. In the next five years, China will continue to adopt an appropriately tight monetary policy.