G.F. 326
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29.
18
The degree of "openness" to external influence
is different in different parts of China.
Generally
speaking, the coastal provinces are more externally oriented than the inland provinces and, among the coastal provinces, Guangdong is probably the most externally
oriented.
30.
As the rate of inflation in China is currently
(19), the higher than that in its major trading partners exchange rates of Renminbi against the currencies of its major trading partners are likely to have to depreciate in order to maintain the relative competitiveness of Chinese products in both the domestic and foreign markets. Although the official exchange rate of Renminbi has remained unchanged against the US dollar and Hong Kong dollar since July 1986, the adjustments have taken place in the black market and the government sanctioned foreign exchange adjustment centres.
31.
It is reported that by July, the black market exchange rate of Renminbi in Guangdong was down to Rmb 92-93/HK$100, a depreciation of about 23% compared
(19) Percentage change at annual rate of consumer prices in
do
Reference month
China
19
June 1988
Hong Kong
6.5
June 1988
Japan
0.2
June 1988
United States
4.0
June 1988
FR Germany
1.1
June 1988
United Kingdom
4.6
June 1988
Sources: Economist 30 July-5 August 1988, 6-12 Augsut 1988
Census and Statistics Department, Hong Kong State Statistical Bureau, PRC.
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