On September 9, 2015, when having a discussion with Chinese and foreign entrepreneur representatives attending the Summer Davos Forum in Dalian, Premier Li Keqiang expressed that the RMB exchange rate can keep basic stability at a reasonable and balanced level.

When answering relevant questions of President and CEO Rich Lesser of the Boston Consulting Group of the US, Li Keqiang expressed that since the new governmental leadership assumed office, the RMB real effective exchange rate has raised by 15%. Due to significant drop of currencies of many other countries against the US dollar, the international market trend propels China to adjust the middle rate quotation mechanism of the RMB exchange rate, but just to a minor degree. In terms of general ledger, the RMB real effective exchange rate of this governmental leadership against the US dollar has witnessed a relatively substantial growth.

Le Keqiang noted that the RMB exchange rate keeps basic stability at present after fine-tuning. Because the RMB does not have a basis of continuous depreciation, China has its economy run within the proper range with relatively sufficient foreign exchange reserve and still increasing surplus in trade of goods, all indicating that the RMB exchange rate can keep basic stability at a reasonable and balanced level. Sometimes it can be described by a Chinese buzzword “got shot even no move”. China does not expect to stimulate export by the RMB depreciation, which is not in conformity with the direction of China’s structural adjustment. China is even less willing to see the “currency war” happen in the world, because China is a major economy highly integrated into the whole world, so if the “currency war” does happen, it will only bring more harm than benefit to China.

He said that after the fine-tuning of the RMB exchange rate, relevant sectors and enterprises specialized in export have been once surveyed and they expressed hope that the RMB exchange rate can keep basic stability at a reasonable and balanced level, because if the market is expected to have a continuous depreciation, they can not even receive standing orders, and how can this be beneficial to China’s export?

Li Keqiang expressed that the internationalization of the RMB will be chosen by the market but also should be in line with China’s economic development reality. It has a process, and we will promote step by step measures including convertibility of the RMB under capital accounts. Yet there is one point to be sure that the continuous depreciation of the RMB certainly goes against its internationalization, which is not the orientation of our policy. China is willing to join the Special Drawing Rights (SDR), not only for the gradual internationalization of the RMB, but also to share its due international responsibility as a major developing country. China is not the source of risk for the world economy, but the source of impetus for the world economic growth.