CONFIDENTIAL
26
機密
not redeemed in time will be cancelled (11). In addition,
Renminbi loans to enterprises will be reduced by the amount of foreign exchange quotas on hand with them. These two measures are aimed at dampening hoarding and speculative
activities in the swap markets.
41.
The foreign
suffers
following:
exchange
system in China still
from some major shortcomings, including the
(a)
(b)
The co-existence of multiple exchange rates in
China creates confusion and uncertainty to
The high
overseas
investors and traders.
volatility of the swap and the black market rates
over the past twelve months or so has added to
this problem.
The
to
official exchange rate of the Renminbi is too
far apart from its swap market rates. Coupled with the rather opaque foreign exchange retention
system, this has led
allegations from the
United States that China maintains non-tariff
barriers through manipulation of its foreign
exchange system. This hampers the development of
China's external trade relations.
(c)
Convertibility is still being limited through
restrictions
on participation and trading
volumes, and through specific conditions as may
be attached to the transactions.
(11)
Quotas recorded on or before 30 June 1993 will expire by 30 September 1993, while quotas recorded on or after 1 July 1993 will remain valid for six months.
GF 323
CONFIDENTIAL
機密
Page 120Page 121