Official: RMB appreciation 'less necessary'
1 September 2008
Further appreciation of the renminbi (RMB) against the US dollar has become "less necessary," as it will likely still appreciate against other currencies, Cheng Siwei, the vice chairman of the standing committee of the National People's Congress, told the Financial Times in an interview. China's currency has gained 7% against the dollar so far this year, though appreciation dropped off in August. Cheng said "to speak frankly, there are some disputes" about foreign exchange policy among China's leadership. A key worry has been inflows of "hot" speculative capital, which Cheng estimated totaled US$100 billion in 2007. Cheng said the dollar may continue to get stronger as it did in August.