In that sense, the Reserve Bank will continue to disappoint those who want everything to be black-or-white for as long as the Bank continues to be open and honest. What about the rising exchange rate? The only other point I would like to touch on briefly relates to the sudden strengthening of the New Zealand dollar over the last few weeks.
In comparison with an exchange rate regime of pegging to the US dollar solely, it can better reflect the competitiveness of RMB against major currencies, better absorb the impact generated by an unstable US dollar and moderate the fluctuations of RMB exchange rates at the multilateral level, safeguard the overall stability of China’s foreign economic and trade environment and consequently promote the basic equilibrium of balance of payments as well as the sustained, coordinated and healthy growth of the Chinese economy.