TNAG-2791-FCO40-4030-Relations-between-Hong-Kong-and-China.-With-maps-1993 — Page 65

GF 323

CONFIDENTIAL

14

機密

double-digits.

Index for

faster rate than in 1992, with a possible worsening towards

The rate of increase in the Cost of Living

the major cities, which is already in

double-digits, is also likely to accelerate further,

particularly

in the face of more

prices of services in the urban areas.

Exchange rate of Renminbi

25.

Experience

rapid increase in the

•

over the past few years indicates that

the exchange rate of the Renminbi is likely to depreciate after a period of significant inflation (14) ̧ The

official exchange rate of the Renminbi against the US$ was

devalued on several occasions during 1992, from 5.434/US$

to 5.752/US$.

The exchange rates quoted in the foreign

exchange adjustment centres experienced even sharper

declines, as did those in the black market, particularly towards the end of last year and the early months of this

(14)

(%)

1980

6.0

Year-on-year

rate of increase in the General Retail Price Index

official exchange rate of Renminbi against the US dollar at year end Rmb/US$ % change#

+2.3

1.530

1981

2.4

1.746

+14.1

1982

1.9

1.923

+10.2

1983

1.5

1.981

+3.0

1984

2.8

2.796

+41.1

1985

8.8

*3.202

+14.5

1986

6.0

3.722

+16.3

1987

7.3

3.722

0.0

1988

18.5

3.722

0.0

1989

17.8

4.722

+26.9

1990

2.1

5.222

+10.6

1991

2.9

5.434

+4.1

1992

5.4

5.752

+5.9

Note : (#)

Positive figures indicate a devaluation

of the Renminbi.

CONFIDENTIAL #2